The groundbreaking ceremony for WANLI Tire’s new tyre-casing manufacturing facility in Svay Rieng province took place on January 12. CDC
Cambodia will soon have its 6th tyre manufacturing plant, the result of a $500 million investment from the Chinese company Wanli Tire Co.
Located in the SIN Bavet Special Economic Zone of Svay Rieng province’s Bavet town, the plant will contribute to the export of rubber tyre casings to international markets, a sector which generated almost $800 million in the first 11 months of 2024.
The January 12 groundbreaking ceremony of the new facility was attended by Sun Chanthol, the first vice president of the Council for the Development of Cambodia (CDC), as well as Chinese Ambassador Wang Wenbin.
Also in attendance were Svay Rieng provincial Governor Peng Pursa, Guangzhou Industrial Investment Holding Group chairman Jing Guangjun and Wanli Tire chairman Cao Xiandong, along with other notables.
The new factory will occupy about 32 hectares and is expected to create around 1,000 jobs.
Wanli will become the second tyre manufacturer in the SIN Bavet Special Economic Zone, and the sixth such plant in Cambodia.
The CDC explained that the company’s decision to invest in Cambodia stemmed from discussions between Chanthol and Jing, during the former’s visit to Wanli headquarters in Guangzhou, China, in October 2023.
Chanthol highlighted the strengthening of Cambodia-China relations and the growing trust from Chinese investors in Cambodia.
He emphasised that Cambodia's peaceful environment, stable political situation, strong macroeconomic conditions, good legal investment framework and open economy were key factors driving this confidence.
He encouraged all investors to continue promoting Cambodia as an attractive investment destination, which would not only create more jobs but also support the country’s economic growth and move the Kingdom towards becoming a high-income nation by 2050.
According to the CDC, special economic zones play a vital role in attracting investment. There are 28 such zones currently in operation. The SIN Bavet Special Economic Zone alone has attracted 11 projects, with notable investments in the automotive tyre casing industry, marking the introduction of advanced technologies previously unseen in Cambodia.
Lim Heng, vice-president of the Cambodia Chamber of Commerce (CCC), told The Post on January 13 that tyre manufacturing plants can now be found in several provinces, including Svay Rieng, Preah Sihanouk and Kratie.
He noted that there is still a need to import rubber to meet the demand of Cambodian factories, as locally produced rubber is mainly high-quality types used in other products.
He also pointed out that Cambodia currently produces only about 10% of the rubber needed for tyre casing manufacturing, which indicates an ongoing need for imports to supply the local industry.
Heng added that Cambodian-made tyres are primarily exported to the US and Europe.
Lor Vichet, vice-president of the Cambodia Chinese Commerce Association (CCCA), explained that most of the tyre manufacturing plants in Cambodia come from China, and the majority of them are located in Svay Rieng province’s special economic zone. He also mentioned that current investment in Cambodia’s tyre manufacturing plants could amount to nearly $2 billion.
“The tyre manufacturing industry in Cambodia is expected to continue growing in the future because the political tensions between the world’s two major economic powers will push more factories to relocate to Cambodia,” he suggested.
According to the Ministry of Commerce, from January to November 2024, Cambodia’s exports of tyre casings reached a total of $772.55 million, representing a 135.34% increase compared to the same period in 2023, when exports totaled $328.27 million. Tyre casing exports now account for 3.17% of Cambodia's total merchandise exports, which amounted to $24,348.94 million during the first 11 months of 2024.
