Chinese Company Invests US$200m to Build New Tyre Plant in Kratie

3 March 2023
Local News
6687 Views

Qingdao Double Star Group, a Chinese car tyre manufacturer, has announced plans to invest US$210 million in a new greenfield tyre manufacturing plant in Cambodia. The company will partner with local mining company UBE Development Co. Ltd. to establish a subsidiary, Double Star (Cambodia) Tire Co. Ltd., for the investment.

The new plant will be located in Kratie province’s special economic zone and is expected to be completed within 15 months. Once fully operational, the facility is expected to generate average annual sales of RMB 2.8 billion and a net profit of about RMB 550 million.

“The investment is part of Qingdao Double Star Group’s localisation strategy and aims to “actively respond” to international trade barriers in view of high tariffs on Chinese products,” according to the company.

This move follows two other Chinese companies, Sailun and General Intelligence, who have invested in tyre factories in Cambodia. Sailun invested US$350 million in one special economic zone in Svay Riang province under a 50-hectare area, and production has been operating since November 2021. Meanwhile, General Intelligence has invested US$300 million and is building a factory in the Sihanoukville Special Economic Zone.

The announcement is welcome news for Cambodia’s economy, particularly the industrial sector, which has retained positive signs of growth. In 2022, 1,982 operating manufacturing factories produced a total output of $15,834 million, up 83% from 2021, according to HE Cham Prasidh, Senior Minister and Minister of Industry, Science, Technology and Innovation. The sector also created over one million jobs, an increase of 4%, and had a total investment of US$16.69 billion, an increase of nearly 21%. The new tyre plant investment by Qingdao Double Star Group is expected to further boost the industrial sector and create more jobs in Cambodia.

(Read more)

- Video Advertisement -

Cambodia and Laos Forge Stronger Agricultural Ties to Expand Mango Exports

6 May 2025

In a significant move to enhance agricultural trade, Cambodia and Laos have reached an agreement to boost the export of Cambodian mango products to third countries via Laos’ high-speed rail system. This announcement was made during an official visit from April 30 to May 3, 2025, where H.E. Dith Tina, Cambodia’s Minister of Agriculture, met […]

AEON Breaks Ground on USD 46 Million Shopping Mall in Vietnam

23 April 2025

In a strategic move amidst the global economic downturn, Japanese retail giant AEON is strengthening its presence in Vietnam with the groundbreaking of a new shopping mall. On April 19, 2025, AEON Vietnam commenced construction on the AEON HAI DUONG shopping mall in Hai Duong province, located just north of Hanoi. The project has […]

Malaysia Bets on USD 250 Million Deal to Train 10K Semiconductor Specialists to Spark Homegrown Chip Design Revolution

16 April 2025

Malaysia has sealed a landmark USD 250 million semiconductor partnership with UK-based Arm Holdings, granting the Southeast Asian nation access to Arm’s advanced intellectual property as it aims to shift from a manufacturing-based economy to a high-value design and innovation hub in the global chip supply chain. The agreement, formally signed on 5 March 2025 […]

Cambodia’s Steel Imports Surge in Early 2025

16 April 2025

Cambodia’s steel imports significantly rose in the first quarter of 2025, with the nation importing iron and steel valued at USD217 million. This marks a remarkable 75% increase compared to USD124 million during the same period last year. According to a report released on 10 April by the General Department of Customs and Excise, iron […]

SchneiTec Dynamic Lists Green Bond Mobilising USD 50 million for Green Energy Development

12 April 2025

SchneiTec Dynamic Co., Ltd has listed a green bond on the Cambodia Securities Exchange (CSX), mobilising USD 50 million for its green energy development project in Cambodia. The Official Green Bond Listing Ceremony was held on 11 April 2025, at the Cambodia Securities Exchange. During the ceremony, HE Sou Socheat, a Delegate of the Government […]

Four Major Companies Plan to Make Further Investments in Cambodia’s Automotive and Electronics Sectors

8 April 2025

Four prominent automotive and electronics companies are gearing up to expand their investments in Cambodia, aiming to bolster the nation’s economy. This commitment was announced during a recent study visit by HE Chea Socheat, Deputy Director of the Cabinet of the Council for the Development of Cambodia, on 31 March 2025. During the visit, […]