Cambodia is hard at work developing the country’s rubber industry. It has secured millions of dollars of investment in new tyre production facilities in the country. The plan is for the Cambodian natural resource to be used locally for exports, rather than simply exporting rubber and latex to manufacturers overseas.
China’s Sailun is the biggest new entrant into the local tyre market. Earlier this year it announced plans to build a $142-million tyre factory in Svey Rieng, but has now announced its intentions to double its investment to almost $295-million, increasing its planned manufacturing output from 5-million tyres each year to 9-million units. The plant will be located the Qilu Special Economic Zone and will be managed by Sailun’s subsidiary Cart Tire. Just over a thousand new jobs will be created.
However, Sailun it is not the only Chinese investor coming into the tyre industry in Cambodia. General Science Technology, which recently opened its first overseas plant in Thailand, is building a $200-million tyre plant in Sihanoukville with the capacity to produce 6 million passenger car tyres every year. The plant is expected to open later next year.
Apart from attracting investment, the Cambodian government is also setting up a rubber industry association to ensure stability in production and exports. Cambodia exported $280 -million worth of latex last year, up 25% on 2019.