Investment of nearly 700 million US dollars! New tire factories will be built in Kratie and Svay Rieng provinces in Cambodia

News on September 18, news recently came from Cambodia that it plans to add two tire manufacturing plants in Kratie Province and Svay Rieng Province respectively. The total investment of these two projects is expected to reach nearly 700 million US dollars. It is reported that these two investment plans for tire manufacturing have successfully passed the approval process of the Cambodia Development Council (CDC) in August 2024.

Specifically, the UBE Snuol Special Economic Zone in Kratie Province will welcome a tire manufacturing factory. The agreed investment of the project is as high as US$430 million and is expected to create 1959 new jobs in the area. At the same time, a new tire manufacturing factory will also be built in the Simbayu Special Economic Zone in Svay Rieng Province, with an agreed investment amount of more than US$256 million and is expected to bring 1500 jobs.

Industry experts pointed out that the enhancement of tire manufacturing capabilities in Cambodia will have a positive impact on the local rubber planting industry, encouraging growers to continue and expand the scale of rubber planting. In an interview with Fresh News, Duke Lim Sing, Vice Chairman of the General Chamber of Commerce of Cambodia, expressed optimism about this. He believed that this was undoubtedly exciting and good news for the rubber industry, especially rubber growers in Cambodia. Cambodia currently has more than 400,000 hectares of rubber planting area, and growers have been eager to have a more stable local market to reduce their dependence on export markets.

In addition, if tire manufacturers can obtain a continuous supply of raw materials from local rubber producers, it will not only help increase the number of rubber growers, but may also attract more foreign investors to Cambodia, further promoting the expansion of the rubber planting industry. Currently, there are three Chinese automobile tire manufacturing factories in operation in Cambodia, from Sailun, General Motors and Double Star brands. According to statistics, the total rubber area in Cambodia has reached 407,172 hectares, of which the tapping rubber area is about 320,184 hectares, accounting for 78.64%.