Vietnam’s top tyre producer withdraws from non-core real estate business

August 18, 2014 | 17:00

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Southern Rubber Industry Joint Stock Company (HOSE:CSM) has sold its entire 40 per cent stake in subsidiary Tan Thuan Viet Real Estate Joint Stock Company for VND46 billion ($2.18 million).

Southern Rubber Industry Joint Stock Company (HOSE:CSM) - illustration photo

The divestment is part of the firm’s plan to withdraw from all non-core lines of business to focus on its main line of producing tyres.

CSM in April started operating its VND1.5 trillion ($72 million) first phase of its radial tyre plant with the capacity of 350,000 tyres per year in phase one. The products are planned to hit the market in the third quarter of this year.

CSM hopes the plant will help tap Vietnam’s vast potential, as the country now imports 90 per cent of its radial tyres. It faces heavy competition from foreign peers such as Michelin, Bridgestone, and Kumho.

CSM, also known by its Vietnamese name Casumina, is the leading Vietnamese tyre producer with 25 per cent of the car tyre market and 35 per cent of the motorbike tyre market. The firm’s products are exported to 36 countries and territories around the world.

CSM reported profits of VND169.3 billion ($8 million) in the first half of 2014, up 0.4 per cent on-year, and revenues of VND1.47 trillion ($70 million), down 4.5 per cent on-year.

By By Khanh Tran

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