CART TIRE Co., Ltd. Invests $562 Million in Cambodian Tire Production
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CART TIRE Co., Ltd., a subsidiary of China’s SAILUN GROUP, is investing $562 million in a tire production facility in Cambodia’s QiLu Special Economic Zone, located in Svay Rieng province. The factory is set to produce 1.6 million tires per year for export, tapping into Cambodia’s large labor force and low-cost natural rubber from local agriculture.
First Local Tire Exporter in Cambodia
CART TIRE Co., Ltd. is the first local tire exporter and distributor based in Cambodia. The Kingdom offers a strategic location with access to a large labor force and an abundant supply of low-cost natural rubber, making it an ideal destination for tire production.
SAILUN GROUP, established in 2002 and headquartered in Qingdao, Shandong Province, China, is a leading tire manufacturer and distributor. The group exports its products to 180 countries and regions worldwide, including North America, Europe, Asia, Africa, and South America.
Phased Development of CART TIRE Factory
The CART TIRE factory is built on over 100 hectares of land and is being developed in three phases. The first phase, which focused on the production of tires for passenger cars, was completed and put into operation on November 18, 2021, at a cost of approximately $355 million.
The second phase, involving the production of tires for trucks, was completed at a total cost of $207 million. The third phase is currently under construction and is expected to launch soon. The factory currently employs a total of 2,400 workers.
Utilizing Local Rubber for Tire Production
The factory is using local rubber, a national agricultural product, as a raw material for tire production. According to factory sources, the first-year project will require about 50,000 tons of rubber. The demand for raw rubber is expected to increase to 150,000 tons, accounting for approximately 43 percent of Cambodia’s total domestic rubber production in 2020.
Boosting Cambodia’s Economy
The investment by CART TIRE Co., Ltd. in Cambodia’s tire production industry is expected to provide a significant boost to the country’s economy. The factory will create jobs, generate export revenue, and promote the use of local resources, such as natural rubber. This investment also highlights the growing interest of international companies in Cambodia as a manufacturing hub and demonstrates the potential for further growth and development in the country’s industrial sector.
Source: Khmer Times
