Doublestar opens tire manufacturing plant in Cambodia

Kratie province, Cambodia – Qingdao Doublestar has inaugurated its tire manufacturing plant in Kratie province, Cambodia, the Council for Development of Cambodia announced 6 Sept.

Located in Ube Snuol Special Economic Zone, Newbustar (Cambodia) Tire Co. is a joint venture company owned 80% by Doublestar and 20% by Ube Development Co.

Officially opened in presence of the governor of Kratie, the facility was built with an investment of $140 million (€130 million), said the announcement.

As previously reported by ERJ, the JV partners disclosed plans to build the tire factory last February and started trial production at the unit in earlier this July.

At the time, the group said the new facility would have a nameplate capacity to produce 8.5 million high-performance radial tires per year, including 7 million units of semi-steel radial tires and 1.5 million all-steel radial tires.

Doublestar anticipates that the plant would generate average annual sales of Yuan2.8 billion (€356 million) and net profit of about Yuan550 million.

The facility is expected to support Doublestar’s ‘localisation’ strategy and to help it “actively respond” to international trade barriers in view of high tariffs on Chinese products.