"A new chapter in tire manufacturing: The company invested 8 million to build a factory in Cambodia(December 20, 2024)

On December 12, 2024, another tire company built a factory in Cambodia. The source of this news was learned through the "Overseas Bidding" project of Jiangsu Construction Group of China. The group announced on the same day that it had obtained a contract to build a tire manufacturing plant in Cambodia.

8 million production capacity landed in Cambodia
It is reported that the group from Jiangsu, China, has successfully bid for a 190,000 square meter greenfield factory. Although the group did not provide further details about the location of the factory or the tire manufacturers involved in the project.

However, it can be seen from its public documents that the annual production capacity of passenger car, truck and bus tires in the factory is nearly 8 million. Among the tire companies that have announced the construction of factories in Cambodia in recent years, there are several tire companies that have planned tire factories with this capacity scale and have not laid the foundation. However, the 9.2 million production capacity plan of Fumax has been laid, and the 7.2 million Cambodian project of Zhengdao Tire is in the land leveling stage. This also means that the companies bidding for the project of Jiangsu Construction Group of China should exclude these two.

This means that the investment in tire production capacity in Cambodia should be new tire companies.

In addition, China Jiangsu Construction Group also announced its construction content - including the construction of a new tire factory warehouse, rubber mixing workshop, raw material storage device and outdoor supporting facilities.

According to the current construction speed of Chinese tire companies, it is expected that this tire factory with an 8 million production capacity can be put into production as early as the end of next year.

Tire companies concentrate on investing in Cambodia
As of December 15, 2024, at least 5 Chinese tire companies have built factories and put them into production in Cambodia.

The first is Sailun Group, which built tire production capacity in Cambodia earlier. In 2024, it made additional investments to continue to expand the passenger car tire production capacity of this overseas factory - after all are completed, the annual output of semi-steel radial tires of Sailun Cambodia Factory will reach 21 million.

In addition, the tire production capacity of Doublestar Group and General Shares in Cambodia has also been put into production. Among them, the daily output of General Shares in Cambodia has exceeded 10,000 tires; Doublestar Group's Cambodian project is accelerating the construction of the second phase while the first phase of the project is reaching production as soon as possible.

The factories of Fumax and Zhengdao Tire mentioned above are also accelerating construction.

In addition, Wanli Tire also announced that it would enter Cambodia to build an overseas factory.

It can be said that since 2024, Cambodia has become another hot spot for tire production capacity investment in Southeast Asia. According to rough calculations, based on the current investment and construction speed of tire companies in Cambodia, it is expected that by 2027, Cambodia's annual tire production capacity is expected to exceed 50 million; among which the annual production capacity of passenger car tires will exceed 40 million.

However, it is worth noting that it seems that only Chinese tire companies are building factories here, and foreign capital still conservatively chooses traditional production capacity bases such as Thailand, Vietnam and Indonesia.