Sailun Tire to invest €200m in Cambodia plant expansion

Shanghai, China – Sailun Tire has detailed plans to invest Yuan1.47 billion (€190 million) to expand its tire manufacturing plant in Svay Rieng, Cambodia.

In a 30 Oct filing to the Shanghai Stock Exchange, the Chinese tire maker said it aimed to expand passenger car tire production capacity at the facility by 6 million units per year.

Operational since 2021, and having recently undergone a Yuan600 million expansion project, the Svay site currently manufactures 9 million units of PCR and 1.65 million truck and bus tires per year.

To be completed in 12 months, the project is intended to support Sailun’s exports strategy, which is focused on North America as well as other regions.

The move, said Sailun, will “further enhance the company's ability to cope with international trade barriers and the competitiveness of the enterprise.”

The announcement is the latest in a series of investments by Chinese tire makers in Cambodia, which currently offers a good base for exports, particularly to the US.

In November 2022, Sailun raised €280 million to fund a capacity-increase at the Svay Rieng plant as well as an expansion of its Go Dau facility in Vietnam’s Tay Ninh province.

In May, Wanli Tire disclosed that it was studying a manufacturing plant in Cambodia, making it the fourth Chinese tire maker investing in the country.

In April, Jiangsu General Science Technology officially inaugurated a production facility in the southwestern Cambodian province of Sihanouk.

Designed to produce 5 million units/year of passenger car tire and 900,000 units/year of all-steel truck & bus tires, the unit is due on-line in 2024.

In February, Qingdao Double Star Co. Ltd (Doublestar) unveiled plans to build a greenfield tire plant in Cambodia, in partnership with local mining company Ube Development Co. Ltd.

Under the plan, Doublestar's €196-million facility would have capacity to produce 8.5 million high-performance radial tires per year.