China's Jingdong Rubber Company to invest in Kerala

Posted By:
Subscribe to Oneindia News
Thiruvananthapuram, Jun 16: Even as the Oommen Chandy government gets ready to host the high-profile Emerging Kerala 2012 Global Connect, decks have been cleared for the first Chinese investment in the state.

TPJ Group, a Kottayam-based company manufacturing rubber products, has signed Memoranda of Understanding with Jingdong Rubber Company that operates out of China's Hebei province for two joint ventures.

During their recent visit, a team of officials from Kerala assessed the technology being used by the Chinese firm and its facilities. They found that rubber waste is efficiently recycled by Jingdong. The company produces rubber sheets, mats and sports goods.

Jingdong and TPJ Group are looking to set up a white reclaim rubber production unit with an annual capacity of 1200 tonnes in Kerala. White reclaim rubber, made out of the waste material from latex factories, is a much sought after product in several countries including China.

Jingdong will invest 30 per cent towards the share capital of this joint venture (JV) and is expected to buy the bulk of the production. The surplus may be sold in India.

The second JV, in which Jingdong will invest 49 per cent of the equity, will take up the construction of indoor stadiums, synthetic tracks and courts in Kerala. The Kerala government has provided 10 acres of land in Kasaragod district for setting up the factory.

Jingdong will supply both raw material as well as machinery for the project and arrange training for the Indian staff too. The Chinese company has so far implemented over 30 such projects and was even involved in preparations for the Beijing Olympics.

Jingdong has the approval of the International Association of Athletics Federations to make sports courts, artificial turf and synthetic tracks. It has already done so in Morocco, Saudi Arabia, Malaysia and Thailand.

According to the TPJ Group, the proposed venture will help address the issue of inadequate sporting infrastructure in Kerala.

"A sports-loving state, Kerala has produced a number of world class athletes. But sports development has suffered in the past few years due to lack of infrastructure and facilities for talented young sportspersons," rued Mr George Thomas, the group's managing partner.

"A specialised sports construction company based in the state would be of particular advantage since Kerala is to host the 35th National Games in 2013," he stressed.

The group has been producing stable mats, hollow mats and various kinds of tyre flaps at its three units since 1986. They export 60 per cent of their products to the Middle East, Europe and the US.

"We applaud TJP Group for bringing in the first Chinese joint venture investment in Kerala. We hope to see more such partnerships that will help create more jobs and take our business and industrial sectors to greater heights," said Alkesh Sharma, Secretary (Industries-IP), Government of Kerala.

"Kerala's manufacturers and businessmen continue to be the key drivers of economic growth. This is what we want to showcase with Emerging Kerala 2012; that we are ready to welcome all investors and stakeholders who have an interest in the progress of the state," he added.

At Emerging Kerala 2012, the Kerala government will facilitate connect initiatives, including B2B and B2G meets.

Kerala State Industrial Development Corporation (KSIDC) is the nodal agency for the event while the Confederation of Indian Industry (CII) and National Association of Software and Services Companies (NASSCOM) are the trade and industry partners.

OneIndia News

Please Wait while comments are loading...