Cart Tire revving up to raise capital investment to $700M
ACHINESE car tyre manufacturer is planning to increase its investment in Cambodia by raising its capital to approximately $700 million, in a move aimed at enhancing production capacity and expanding exports to additional international markets.
According to the Council for the Development of Cambodia (CDC), Cart Tire Co Ltd is investing in a factory in Svay Rieng province, making it the first tyre manufacturer in Cambodia with an initial investment exceeding $350 million.
CDC first vice-president Sun Chanthol toured Sailun Group Co Ltd, the parent company of Cart Tire, during his visit to Qingdao in China’s Shandong province on January 6. He held discussions with leaders from the company, headed by Yuan Zhongxue, CEO of Sailun and executive deputy director of China’s National Rubber and Tire Engineering Technology Research Centre.
During the meeting, Sailun management presented their vision to continue collaborating with Cambodia on rubber investments, the construction of processing plants and industrial parks within the Kingdom.
The company said its objective is to increase its capital investment across approximately 120ha of land to boost exports to key markets such as the US, Canada and South Korea.
Chanthol thanked Sailun for their decision to invest in production and reiterated Cambodia's commitment to welcoming all investors.
He conveyed the country’s
aspiration to attract more investments across various sectors, aligning with the Industrial Development Policy 2015-25 which aims to position Cambodia as a high-income country by 2050, leveraging advanced technology and other resources.
Chanthol also highlighted the country’s youthful population, with over 60% under the age of 25, as a driving force for economic growth, emphasising key priorities such as infrastructure development, human resources and technology.
According to the CDC, Cart Tire has committed to purchasing 100% of local latex products in the production chain, including about 50,000 tonnes in the first year and
150,000 tonnes in the subsequent five years.
Chea Chandara, president of the Logistics and Supply Chain Business Association (LOSCBA), emphasised that political stability, strategic geographical location, a skilled labour force and favourable investment regulations have contributed to Cambodia’s ability to attract direct investments.
He said such financing is expected to have positive effects on national economic growth by generating employment opportunities, stimulating the domestic market, reducing raw material exports and increasing government revenue.
"If the company can produce and distribute locally, it would be highly beneficial as
it promotes domestic products, encourages the expansion of rubber tree cultivation, creates employment opportunities for farmers and workers, and may even meet international quality standards," he said.
Currently, most rubber products used in Cambodia are imported from China, Thailand, Malaysia and Vietnam, as reported by the General Department of Customs and Excise (GDCE).
According to the Ministry of Agriculture, Forestry and Fisheries, the Kingdom exported 334,176 tonnes of latex in the first 11 months of 2023 with a total value of $445.42 million. This marked an 11,590-tonne increase, equivalent to 4% growth year-on-year.