Firemax to build $190m tire plant in Cambodia

Weifang, China – Chinese tire maker Shouguang Firemax is planning to invest in a new production facility in Cambodia, according to a filing with tax authorities in China.

The $190-million (€175 million) project is slated to have a capacity to produce 8 million passenger car radial tires and 1.2 million truck & bus radial tires once completed.

In a 26 Feb statement, Weifang ‘municipal taxation bureau’ said it provided ‘personalised and refined cross-border tax services’ to the local tire maker for its overseas investment.

"Building production lines is costly, requires large investments, and has a long payback cycle,” explained Wang Guangjie, financial director of Firemax.

Tax officials, he went on to say, have "taken the initiative to... answer policy questions and teach us step-by-step how to [receive] tax benefits.”

“We are full of confidence in this round of investment," said Wang Guangjie added.

Based in Shouguang, Weifang, Shandong province, Firemax operates one tire production facility in China, with the capacity to produce 12 million units of passenger car tires and 1 million truck and bus tires.

The company is the latest Chinese tire maker announcing plans to expand into Cambodia, as western markets, particularly the US and Europe, tighten trade barriers against Chinese tire imports.

As it stands, Wanli Tire is completing the feasibility studies on a $500 million tire factory project in Cambodia. (ERJ report)

Earlier in the year, Chinese tire major Sailun announced that it doubling the size of its expansion project in Cambodia, with a €290-million investment plan. (ERJ report)

China’s General science also announced a €200-million expansion project in Cambodia, only months after starting up the factory in Sihanoukville Port Special Economic Zone. (ERJ report)

In February last year, Qingdao Double Star unveiled plans to build a €196-million new greenfield tire manufacturing plant in Cambodia , in partnership with local company Ube Development Co. Ltd. (ERJ report)