Doublestar plans to build greenfield tire factory in Cambodia

Shenzhen, China – Qingdao Double Star Co. Ltd has unveiled plans to build a new greenfield tire manufacturing plant in Cambodia , in partnership with local company Ube Development Co. Ltd.

In a stock exchange filing 20 Feb, Doublestar said it aimed to invest Yuan1.4 billion (€196 million) in a new facility with capacity to produce 8.5 million high-performance radial tires per year.

Of that output, the Chinese tire maker said 7 million units will be semi-steel radial tires and 1.5 million all-steel radial tires.

To facilitate the move, Doublestar will establish a subsidiary, with the tentative name of Double Star (Cambodia) Tire Co. Ltd, in Cambodia’s Kratie province special economic zone.

Doublestar will have an 80% stake in the project with Ube Development Co. holding the remaining 20% of shares.

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

Construction is expected to be completed within 15 months and, once fully operational, the facility is expected to deliver average annual sales of Yuan2.8 billion and net profit of about Yuan550 million.