Investment activity intensified as new Chinese investors entered the market, drawn by Cambodia's favourable trade relations with the US and Europe
In 2024, the tire industry in Cambodia experienced an investment surge, spurred by a $1-billion (€910 million) deal between the country and China, focused on rubber and tire projects. (ERJ report)
Investment activity intensified as new Chinese investors entered the market, drawn by Cambodia's favourable trade-relations with the US and Europe.
The new projects will build on a bridgehead created by Sailun Group and Jiangsu General Technology Co. (General Science), which are also expanding existing production factilities in the country.
Early on, Sailun announced a significant increase in its planned investment in Cambodia, doubling a previously announced expansion project.
The company committed Yuan2.2 billion (€290 million) to its plant in Svay Rieng, raising its car tire production capacity by 12 million units annually.
This revised investment followed an earlier decision from October 2023, which aimed to enhance capacity for producing 6 million PCR tires. (ERJ report)
Sailun disclosed further plans to invest €102 million in a "tire industry cluster" in the southern coastal province of Kampot.
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.
Operations 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. (ERJ report)
General Science, meanwhile, unveiled a €180 million investment in January to add a phase II to its existing facility which had been operational in Sihanoukville since May 2023.
Buoyed by the ‘cost-effective’ tires manufactured in Cambodia, General Science rolled out first tires from the expanded site in September.
The group currently has an overall capacity to produce 8.5 million passenger car tires and 1.65 million truck and bus tires in the country.
February saw another Chinese tire maker Shouguang Firemax unveiling a €175-million project to build a facility in an undisclosed location in Cambodia.
The planned unit, it said, will have a capacity to produce 8 million passenger car radial tires and 1.2 million truck & bus radial tires once completed.
Another Chinese tire major Qingdao Doublestar inaugurated its tire plant in Kratie province, Cambodia, in September, over 18 months after the initial project launch.
Located in Ube Snuol Special Economic Zone, Newbustar (Cambodia) Tire Co. is a JV owned 80% by Doublestar and 20% by Ube Development Co.
The €130-million plant has 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. (ERJ report)
Wanli Tire, meanwhile, has not provided an update beyond an earlier report about completing the feasibility studies on a $500 million tire factory project in Cambodia. (ERJ report)
In addition to the tire manufacturing plants, related industries have also strengthened their presence in Cambodia, supporting the high demand in the region.
In the final days of 2024, Chinese construction group Jiangsu Provincial Construction said it had won the bid for a new 190,000 sq.m tire plant project in Cambodia.
The facility will have capacity to produce 8 million units of passenger car and truck & bus tires per year, said the Nanjing-based group, without identifying the location or the tire maker behind the project.
In June, Chinese rubber and tire machinery major MESNAC disclosed plans to build a Yuan28-million factory in Cambodia to be operated by 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.
Korea’s Hyosang, meanwhile, announced in May that it was considering the expansion of its polyester tire cord business into Cambodia, without providing further updates.