Trivandrum: Kottayam based rubber products manufacturer, TJP Group, has signed Memoranda of Understanding (MoUs) with China’s Jingdong Rubber Company for two joint ventures (JV), signalling the first Chinese investment in Kerala. The tie-up provides a massive fillip to the State as it gets ready to host the high-profile Emerging Kerala 2012 Global Connect with the aim of pitching itself worldwide as a business hub and preferred investment destination.
The agreement was signed following the recent visit of a high-level official delegation to China to explore the possibilities of Chinese investments in Kerala. Jingdong, a private company based in China’s Hebei province, specialises in rubber waste recycling, production of rubber sheets and mats, and sports goods. It proposes to partner TJP Group in setting up a white reclaim rubber production facility and a sports infrastructure firm in Kerala.
Alkesh Sharma IAS, Secretary (Industries – IP) said, “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.”
TJP Group’s first MoU with Jingdong is for a white reclaim rubber production unit with an annual capacity of 1,200 tons. Jingdong, which will invest 30% towards the share capital of the proposed JV, has offered to buy the bulk of the production, while the surplus is to be marketed within India and in other countries.
The second proposed joint venture company, in which the Chinese partner will invest 49% of the equity, will take up construction of indoor stadiums, synthetic tracks and courts and similar sports projects. The Government of Kerala has provided 10 acres of land in Kasaragod district for setting up the factory.
George Thomas, Managing Partner, TJP Group said, “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”.
TJP Group, which comprises three units, says the new MoUs are part of its expansion and diversification plans. The company has been manufacturing stable mats, hollow mats and various kinds of tyre flaps since 1986. It exports 60% of its products, mainly to the Middle East, Europe and the US. The new partnership with one of China’s leading rubber companies is expected to help TJP widen both its domestic and international markets.
Kerala Biz News