Chinese Tire Firms Accelerate Overseas

Amidst a reshaping global tire market landscape, Chinese tire companies are reporting a flurry of successes in their overseas expansion! Recently, companies like Haohua, Zhengdao, and Fomax have announced significant progress on their overseas projects, from substantial investment in their Vietnam factories to the accelerated establishment of their Cambodian bases.

This demonstrates the strong momentum of Chinese tire companies upgrading from "product export" to "production capacity export," becoming a prominent benchmark for the industry's counter-cyclical breakthrough.

Major Investment! Haohua's Vietnam Factory to Expand Production by 2.776 Billion Yuan, Capacity to Exceed 24 Million Tires.

On February 5th, significant news emerged from the Foreign Direct Investment (FDI) business conference in Dong Nai Province, Vietnam. Registration certificates were issued for three foreign investment projects, with Haohua (Vietnam) Co., Ltd., a subsidiary of China's Haohua Group, successfully receiving approval for an additional investment of US$400 million (approximately RMB 2.776 billion), becoming the focus of the event.

It is reported that after this capital increase, the total registered capital of Haohua's Vietnam factory will soar to US$900 million (approximately RMB 6.246 billion). This move is not only an important step in the company's overseas expansion but also a vivid example of Chinese tire companies optimizing their global production capacity and seizing international markets. Notably, the Dong Nai provincial government completed all capital increase procedures in less than 24 hours, demonstrating the local government's high level of recognition and support for Chinese investment.

According to the plan, the newly added RMB 2.776 billion will be invested entirely in the second phase of the factory's construction. Upon completion, the project is expected to add 10 million tires per year, bringing the factory's total annual production capacity to 24.4 million tires, with annual sales revenue projected to approach US$679 million, achieving a double leap in both capacity and efficiency.

Multiple Expansions! Zhengdao and Formax Expand into Cambodia, Writing a New Chapter in Overseas Factory Construction with "China Speed"

Haohua's capital increase and expansion is just one example of the overseas expansion strategy of Chinese tire companies. Currently, amidst pressure on the global tire industry and escalating trade barriers, Chinese tire companies are accelerating their overseas expansion, with Cambodia becoming a key strategic location. Zhengdao Tire and Fomax Tire have both reported significant successes.

On January 19th, local time, Zhengdao Tire's Phase II project in Cambodia reached a crucial milestone – the completion of the tire blank warehouse raft foundation concrete work. This marks the successful completion of the project's foundational engineering, clearing obstacles for the subsequent installation of intelligent warehousing and sorting equipment, and demonstrating the efficiency and strength of Chinese companies in overseas construction.

Behind this impressive construction progress lies the company's strong resilience. Data from the 2025 year-end conference shows that despite widespread industry pressure, Zhengdao Tire defied the trend, achieving a 25.3% year-on-year increase in all-steel radial tire (TBR) sales, a remarkable 59.6% increase in foreign trade exports, and a steady 16.2% growth in sales at its East China factory. All of this is inseparable from the continued implementation of its "overseas factory construction + global layout" strategy.

Fomax Tire is also making strides in Cambodia, with its overseas expansion achieving an astonishing "China speed." On September 26, 2025, the first tire rolled off the production line at Fomax Tire's Cambodian factory, marking the official commencement of production at its overseas manufacturing base.

This modern factory, with a total investment of US$190 million, only broke ground in April 2024, taking just 17 months from blueprint to production, setting a new record for the speed of overseas tire factory construction.

The factory is designed to have an annual production capacity of 8 million semi-steel radial tires and 1.2 million all-steel radial tires. The project team overcame the challenges of Cambodia's hot and rainy climate and the technical barriers of cross-border equipment commissioning, adhering to high standards in construction and ultimately achieving full production line operation.

After the factory goes into operation, it will not only shorten the logistics radius for delivering products to Southeast Asia, Europe, and the United States, but also leverage local resource advantages to reduce production costs, laying a solid foundation for Fomax to expand into the mid-to-high-end overseas market.

Industry Upgrade! Chinese tire companies' overseas expansion has entered a deeper phase of large-scale and strategic development.

From Haohua's increased investment and production expansion at its Vietnam factory to the accelerated establishment of Zhengdao and Fomax in Cambodia, the overseas layout of Chinese tire companies has exhibited distinct characteristics of "multiple bases, high speed, and wide coverage." According to Zhuochuang Information, by the end of 2025, more than 20 Chinese tire companies had built over 40 factories in 14 countries worldwide, forming a pattern of "dual overseas bases" or even "multiple overseas bases."

Industry insiders say that the overseas layout of Chinese tire companies has long surpassed simple capacity expansion and is transforming towards the optimal allocation of global resources, upgrading from "selling products" to a comprehensive export of "capacity + brand + technology."

The implementation and advancement of these overseas projects have not only boosted local employment and economic development and built an important platform for Chinese tire brands to go global, but also propelled "Made in China" to achieve a leap from "scale-driven success" to "value-driven breakthrough" in the global tire market.

As more and more Chinese tire companies accelerate their overseas expansion, Southeast Asia, Africa, and South America have become new hotspots. It is believed that in the near future, Chinese tires will write an even more brilliant "Chinese chapter" in the global market, thanks to their strong production capacity and advanced technology.