Chinese tyre maker Jiangsu General Science Technology intends to open its new plant in Cambodia during the first half of this year.
The General Tire Technology (Cambodia) Co., Ltd. facility now being set up in the Sihanoukville Special Economic Zone is expected to enter production in May with a capacity to manufacture 5 million semi-steel radial tyres and 900,000 all-steel radial tyres.
On 11 January 2021 Jiangsu Province Department of Commerce approved Jiangsu General Science Technology Co. Ltd’s (GS Tire) $300 million investment in a new tyre factory in Cambodia.
Company stock market filings had previously described that factory as a $204 million investment, which suggests the scope of the project has increased significantly.
The foundation stone laying ceremony for Jiangsu General’s Cambodia factory, its second overseas factory, was held in January 2022. The tyre maker’s Thailand base already has a production capacity of one million all-steel radial tyres and six million semi-steel radial tyres.
Jiangsu General had earlier announced the plans to invest 1.304 billion yuan ($203.947 million) in the construction of “high-performance semi-steel radial tyre projects in Cambodia”.
The project is also believed to form part of China’s ‘One Belt One Road” development strategy. SSEZ currently hosts 170 factories from the European Union, the US, China, and the Southeast Asian region and has generated some 30,000 jobs for the locals.
Jiangsu General’s plans for a Cambodia factory followed the firm’s investment in a Thailand tyre production facility in 2018 – changing from the earlier plans for a Cambodia factory that were halted in favour of the Thailand tyre production plant.
Jiangsu General is the 33rd largest tyre manufacturer in the world. However, with annual sales of $523.82 million in 2020 and at around this level for the last five years, the company is clearly a growing international player – a point underlined by its latest Cambodia tyre factory investment plans.
Jiangsu General’s range of tyre brands includes Maxima, Red Horse, Qi Ma, Starwood Pass and Express.
This article was first published in Khmer Times. All contents and images are copyright to their respective owners and sources.
