The Newbustar (Cambodia) Tire Co Ltd tyre manufacturing plant, valued at approximately $140 million, was officially inaugurated today on Friday, September 6, within the UBE Snoul Special Economic Zone (SEZ) in Kratie province.

Chea Vuthy, secretary-general of the Council for the Development of Cambodia (CDC), who presided over the inauguration, noted that the decision of the Newbustar Group to invest around in the UBE Snoul SEZ was a prudent one. 

He believed that the substantial investment would “contribute to Cambodia's economic diversification, as well as promote socio-economic development and create jobs for the local population”, according to a CDC press release.

Vuthy also lauded the visionary initiative of former Prime Minister Hun Sen, currently Senate president, to establish the SEZ development programme back in 2006. 

The creation of SEZs was intended to diversify Cambodia's industrial base, which at the time relied heavily on labour-intensive industries, primarily focused on the garment and footwear sectors. The programme aimed to attract industries with higher added value and advanced technology, he said. 

“At present, the Kingdom has 26 operational SEZs, which have attracted 775 investment projects with a total investment value of approximately $10 billion. They have provided employment for around 180,000 workers,” he said.

The UBE Snoul SEZ has attracted several noteworthy investment projects, including the production of electrical equipment, the assembly of solar panels, and now, tyre manufacturing – a new, high-value-added industry that employs modern technology.

According to CDC records, there are five registered tyre manufacturing investment projects in the Kingdom’s SEZs.

Newbustar (Cambodia) Tire Co., Ltd. began construction of the factory in May 2023. The facility has an annual production capacity of up to 8.5 million tyres.

The company is a subsidiary of Doublestar Group, a major Chinese tyre manufacturer listed on the Shandong Stock Exchange and owned by the Chinese state.