Mesnac to build rubber machinery factories in Vietnam, Cambodia

Shenzhen, China – Chinese rubber machinery major Qingdao Mesnac has announced plans to expand its production footprint in Vietnam and Cambodia as the two Asian countries gain traction among tire makers.

The projects will have an overall cost of Yuan135 million (€18 million) and are to be completed in less than two years, Mesnac said in two separate announcements 12 June.

In Vietnam, the machinery maker is aiming to invest a total of Yuan106.8 million to build Mesnac United Technology (Vietnam) at the Thanh Thanh Cong Industrial Park, Tay Ninh province.

To be completed in 18 months, the project involves equipment purchase and installation costs of Yuan56.39 million; land costs of Yuan16.32 million; construction costs of Yuan29.10 million; and working capital of Yuan5 million.

In Cambodia, the company is aiming to invest Yuan28 million to set up the Mesnac United Technology (Cambodia).

To be based in Qilu Cambodia special economic zone, Svay Rieng province, the project is expected to be completed in 14 months.

Both factories will manufacture special equipment for rubber processing; metal cutting machine tools; moulds; mould cleaning machines and other general equipment.

Over the recent years, Vietnam and Cambodia have become hotspots for tire makers, offering more favourable trade environment, particularly for Chinese tire manufacturers.

Chinese tire makers Sailun and General Science already have production facilities in Cambodia, with other key players such as Firemax, Doublestar, Wanli and HK Tire building production facilities in the country.

Last month, Korea’s Hyosung Group said it was considering the expansion of its spandex and polyester tire cord business into Cambodia, following successful investments in China and Vietnam.

Furthermore, China and Cambodia have disclosed plans to expand their joint rubber & tire projects, having signed a $1 billion (€910 million) MoU in January.

In Vietnam, China’s Sailun and Ghuizhou Tyre as well as other brands such as Bridgestone, Michelin, Yokohama, Kumho, Cheg Shin, Kenda and Goodyear operate tire production facilities.

Belgian tire cord and steel wire specialist Bekaert has recently started up its production facility in Vietnam to support the growing tire business in the country.