Sailun to build ‘tire industry cluster’ in Cambodia

Shanghai, China – Sailun Group is investing $112 million (€102 million) in Cambodia to expand its operations beyond tire production in the country.

In a 29 Oct stock exchange announcement, the Chinese tire group said it aimed to establish a tire industry cluster - Cambodia Kampot special economic zone project -through its local subsidiary Kampot Bay Investment.

To be completed in 12 months, the project will involve leasing a land in Cambodia's southern coastal province of Kampot for long term and attracting investment in collaboration with local programmes.

To be managed and operated by Sailun subsidiaries, the economic zone will include the production of new rubber materials, composite rubber materials, silica, carbon black, rubber additives, recycled waste rubber, synthetic rubber, steel cord and other related industries.

Sailun has been operating a tire manufacturing plant in Cambodia’s Svay Rieng province in 2021 and is currently expanding it to increase passenger car tire production capacity at the site by 12 million units per year.

Once expanded, the facility, 300km away from Kampot, will have a production capacity of 21 million units per year of PCR, in addition to 1.65 million truck and bus all-steel radial tires.

According to Sailun, over the 10 years to 2035, the Kampot project is expected achieve a total operating income of $153.5 million, a profit of $51 million, and a net profit of $50 million.