Thailand
Cambodia: $300M tire factory starts operations in Preah Sihanouk
A tire factory with an investment of $300 million started its operation in Preah Sihanouk province on Saturday.
General Tire Technology (Cambodia), located in Sihanoukville Special Economic Zone (SSEZ), is a subsidiary of Chinese tire maker Jiangsu General Science Technology.
The factory is capable of manufacturing at least five million vehicle tires and 900,000 truck tires per year, said Gu Cui, chairman of Jiangsu General Science Technology.
“The main export markets are the United States, Europe, Brazil and other countries,” he said.
The company imports raw materials of rubber from abroad for its production chains.
Provincial governor Kuoch Chamroeun lauded the company’s investment in the economic development of the province. “General Tire Technology (Cambodia)’s investment in Preah Sihanouk province has made a significant contribution to the province’s economic growth, generating jobs for local people, increasing the volume of imports and presenting opportunities for investment in Cambodia,” Chamroeun said.
Cambodia is an agricultural country that grows a lot of rubber, Chamroeun said, asking the tire manufacturers to buy local rubber for production chains, which will boost Cambodia’s rubber prices and increase the income of farmers.
A new Chinese-invested tire factory will soon start its production chain in northeastern Kratie province, one of the provinces with rubber plantations, according to the Council for the Development of Cambodia.
China’s Shandong province-based car tire manufacturer Qingdao Double is investing CNY1.4 billion (approximately $210 million) in the factory.
Once operational, the factory will produce 8.5 million high-performance radial tires a year.
Cambodia has recently proposed to take into account the company that can produce in Cambodia using local rubber, said Chea Vuthy, Deputy Secretary-General of the Cambodian Investment Board of the Council for the Development of Cambodia.
“Currently, the owners of the tire factories have signed contracts with 10 local rubber suppliers for raw material,” he said.
Cambodia exported 372,900 tons of dry rubber in 2022, an increase of 1.8 percent from 366,300 tons a year earlier, according to a General Directorate of Rubber report.
Source: https://www.khmertimeskh.com/501257841/300m-tire-factory-starts-operations-in-preah-sihanouk/