Prinx Chengshan has been a rising start in the European commercial tyre market but its Thailand operations have been the subject of concern to the authorities
Prinx Chengshan contests accusations of poor operations in Thailand
The Industrial Estate Authority of Thailand (IEAT) has shut down Prinx Chengshan Tire (Thailand) for allegedly producing substandard tyres and repeatedly violating waste disposal rules.
The initial complaint from the IEAT was that the company, based in WHA Eastern Seaboard Industrial Estate 3, Chon Buri, was found to be illegally producing car and truck tyres without the required Thai Industrial Standards (TIS) certification. This may simply be down to an oversight or a misunderstanding of the regulations.
However, according to the IEAT a more disturbing practice they allege was that Prinx Chengshan was also caught removing production dates and brand markings from tyre sidewalls.
IEAT officials identified a significant quantity of tyres without the required TIS markings. As compliance with these standards is mandated by law to ensure tyre safety, the distribution of uncertified tyres may present notable public safety concerns.
Thailand is a growing supplierof tyres to the global market, particularly in Europe and the USA. IEAT warned that the case could damage domestic confidence in the tyre industry, affect Thailand’s economic credibility, and tarnish the country’s investment image.
Thailand is also stepping up its controls on waste management and it is also reported that Prinx Chengshan were previously found to have improperly transported hazardous waste off site without the proper authorisation.
In response to this action by IEAT, Prinx Chengshan’s head office posted on the Hong Kong Stock Exchange stating pursuant to Stock Exchange of Hong Kong Limited listing rules that:
“The Company’s wholly-owned subsidiary Prinx Chengshan Tire (Thailand) Co., Ltd. has recently received a temporary suspension notice from the Industrial Estate Authority of Thailand (IEAT) in respect of its tyre production base in Thailand primarily because the packaging of carbon black is alleged to have breached Thai industrial waste disposal regulations and because the expansion production line is pending waste emissions inspection acceptance.
Prinx Thailand has therefore temporarily suspended its tyre production base pending adoption of remedial measures and resolution of the matter. Prinx Thailand has instructed counsel to handle the matter.
At the same time, Prinx Thailand is in active negotiations with the IEAT to clarify and resolve the matter as soon as practicable and it expects to have more clarity on the period of closure in one to two weeks’ time.”
