Triangle Tire sets up shop in Cambodia
A board resolution to invest in Triangle Tyre Co., Ltd. marks a crucial step in the Chinese tire manufacturer's globalization strategy, establishing a new production base in Southeast Asia with an annual capacity of 7 million tires.
On January 15, 2026, the board of directors of Triangle Tyre Co., Ltd. approved its overseas investment plan. The company plans to invest 3.219 billion yuan to build a new high-performance radial tire production base in Svay Rieng Province, Cambodia, with an annual capacity of 7 million tires. This will be its first overseas production base, scheduled to commence construction in March 2026, with a construction period of 17 months. Upon completion, it will have an annual production capacity of 6 million semi-steel radial tires and 1 million all-steel radial tires.
01 Investment Plan
This investment represents a significant breakthrough in Triangle Tyre's globalization strategy. The company will establish a wholly-owned subsidiary in Cambodia as the implementing entity, with funding sourced from its own capital and self-raised funds. The project is expected to generate an average annual revenue of 2.585 billion yuan, with a return on investment of 15.1%. Products will focus on the passenger car and commercial vehicle markets, precisely matching global demand.
02 Strategic Layout
The choice of Cambodia as the location reflects deep strategic considerations. As a member of ASEAN, RCEP, and the Lancang-Mekong Cooperation mechanism, Cambodia is deeply integrated into the Belt and Road Initiative. Its incentive policies, low-cost land, and stable labor force align with the long-term needs of tire manufacturing.
More importantly, Cambodia's proximity to major global natural rubber producing regions significantly shortens the transportation radius of raw materials, reducing operating costs. Simultaneously, Cambodia enjoys preferential treatment under the US Generalized System of Preferences (GSP), meaning there are currently no tariff barriers for exports to Europe and the US, allowing it to circumvent the high anti-dumping and countervailing duties faced by Chinese tire manufacturers.
03 Market Impact
This move aligns with the globalization trend of Chinese tire companies. Currently, nine Chinese-funded enterprises, including Sailun and Wanli, have established operations in Cambodia, and local tire production capacity is rapidly increasing.
Triangle Tire currently has an annual production capacity of nearly 27 million tires, with over half of its products exported to more than 180 countries and regions, and a mature overseas marketing network. The Cambodian base will form a differentiated production capacity network from its domestic factories, upgrading from product export to global production and operation, strengthening production capacity resilience and market competitiveness.
04 Risk Considerations
The project still faces multiple uncertainties, requiring approvals from relevant domestic and international departments. Changes to the project due to approval issues cannot be ruled out. Furthermore, differences exist between Cambodian laws and regulations and the domestic business environment.
Global political and economic changes, raw material prices, and exchange rate fluctuations may all impact the project's profitability. The company plans to manage risks by dispatching a professional team, utilizing international consulting firms, and strengthening communication with government and enterprises.
Triangle Tyre explicitly defines the Cambodia project as a "new strategic breakthrough" in its globalization strategy and a "new driving force" for high-quality development. This positioning precisely aligns with the company's transformation needs.
With an annual designed capacity of 7 million rubber units, accounting for nearly a quarter of the company's existing total capacity of nearly 27 million units, this high proportion of overseas capacity deployment demonstrates the company's firm commitment to the global market and signifies that its production capacity layout will achieve synergy and complementarity between domestic and overseas markets.
Upon completion and commissioning of the project in the autumn of 2027, this production base located in Svay Rieng Province will leverage its locational advantages to connect the supply chain of natural rubber resources in Southeast Asia with core consumer markets in North America and Europe, becoming a key hub with both resource integration and market radiation capabilities.
For this Chinese tire manufacturer, rooted in Weihai, Shandong, with 50 years of development experience, the shift from domestic production and product export to establishing its first overseas manufacturing base, and the geographical leap from Weihai, Shandong to Svay Rieng Province, Cambodia, represents a fundamental upgrade in its business model.
This upgrade is not only an extension of its production footprint but also a comprehensive advancement in its global operational capabilities across the entire chain of R&D, supply chain, and marketing, giving it greater confidence in the global tire market competition.
