Svay Rieng, Cambodia – Sailun is more than doubling its planned investment in a greenfield tire production facility in Cambodia, the Chinese tire maker said in an announcement earlier this month.
The tire maker initially disclosed plans to build the tire factory in March this year, with €142 million (1.1 billion yuan) earmarked for the project.
In its latest announcement, Sailun said it was planning to raise the amount to €292 million, to increase the designed annual capacity from 5 million units of semi-steel radial passenger car tires to 9 million units per year.
“We have already built a plant in Vietnam, and a new plant in nearby Cambodia can make use of the two locations’ mutually complementary resources,” said Sailun.
The plant will be located in the Qilu Special Economic Zone in Svay Rieng city, Svay Rieng province. It will be managed by Sailun’s fully-owned subsidiary Cart Tire and will create 1,045 new jobs.
The project will take two years to complete, and is expected to generate €47 million average net profit annually on €276 million average sales, said Sailun.
Tires made at the plant will be mainly exported to the US and European markets, Sailun added.