Building a factory in Cambodia is a shortcut for Chinese tire companies to break through
Recently, Jiangsu Top Tire announced that it plans to invest 10 million US dollars to establish two wholly-owned subsidiaries in Cambodia's Siem Reap Province to promote high-performance solid tire projects and supporting industrial real estate construction.
Among them, it plans to invest 7 million US dollars to establish "TOPOWER (CAMBODIA) Co., LTD", which mainly produces high-performance solid tires. At the same time, it plans to invest another 3 million US dollars to establish an industrial real estate company "JADEKING INDUSTRY CO.LTD", which mainly engages in land leasing and sales, industrial plant construction, leasing and sales.
Cambodia, a blessed land for Chinese tires to go overseas
For now, Cambodia is more attractive, and the tire industry has not been targeted by major countries. In fact, the outbreak of Cambodian tire investment is not a sudden rise. It can be said that the "attitude" of overseas markets towards Southeast Asian tires in the past two years is the main reason for the real investment boom in Cambodia.
Zhengdao Tire Invests in Cambodia
In March 2024, according to relevant media reports, another tire company plans to enter Cambodia to build a tire factory, with an estimated design capacity of 6 million semi-steel radial tires and 1.2 million sets of full-steel radial tires. Zhengdao Tire ranks 44th with US$371 million.
Zhengdao Tire Co., Ltd. was established in 2011. It is a high-tech enterprise focusing on the research and development, production, sales and service of high-performance passenger car tires. The company has currently formed an annual production capacity of 20 million sets of high-performance semi-steel radial tires and 1.8 million sets of full-steel radial tires, with 3,500 employees, including more than 200 professional management and technical personnel.
Double anti-dumping prompts tire companies to go global
From 2021 to 2023, the pressure on tires produced in Vietnam and Thailand by American tire companies is increasing day by day. The double anti-dumping investigations launched at any time and the changing double anti-dumping tax rates seem to imply that tires produced in these two countries will eventually end up like Chinese tire exports. The United States is trying to force Thai and Vietnamese tires out with higher tax rates.
Tire companies, fed up with the situation, have begun to look for new "refuges" for their overseas production capacity exports. Cambodia has not been affected for the time being. Of course, there are many other paradises for exporting to the sea besides Cambodia, which just shows that the internationalization of Chinese tires is becoming more and more extensive.
