Sailun’s Cambodia factory begins tyre production

Sailun’s Cambodia tyre factory manufactured its first tyre on 1 November 2021. Symbolic launch aside, production proper began the following week with the goal of reaching full speed by 18 November 2021.

The first product to emerge from the Cambodia factory’s orange-jacketed Mesnac curing presses was a Sailun Atrezzo ZSR in what appeared to be a low profile greater than 16-inch size, which gives us an impression of the kind of tyres being made at the new facility as well as an initial insight in the production centre’s ongoing strategy.

Describing the factory as a new “strategic growth centre” for Sailun, company representatives wrote: “This is the next big step for Sailun Group’s international footprint. Now we will be able to provide our global customer base with an even better service.”

Separately, local news sources quoted Song Jinda, secretary general of the Cambodia Development Council, as saying that Cambodia’s first automobile tyre production plant is “proceeding smoothly as planned”. According to those sources, the project was constructed by China Cart Tire Co. Ltd., a wholly owned subsidiary of Sailun International Holdings (Hong Kong) Co. Ltd invested US$350 million in the construction of the factory.

According to Song Jinda, Sailun’s Cambodia plant will create more than 4,000 job opportunities and result in the purchasing of 150,000 tons of Cambodian domestically sourced rubber every year. At present, almost 100 per cent of Cambodia’s rubber is exported to foreign markets, so the establishment of Sailun’s Cambodia production base offers key strategic benefits to the local economy. It is understood that the factory will need about 50,000 tons of rubber for the first year of production and that demand for rubber will triple in the next five years, equating to almost half of Cambodia’s rubber output in 2020.

In March 2021, Sailun said it was to invest 1.178 billion yuan in the Cambodia project with a view to producing 5 million “semi-steel radial tyres” there. By June the investment figure had risen to 2.29 billion yuan and 9 million tyres a year capacity. With both the investment and rubber consumption figures in mind, it appears that Sailun is planning to achieve roughly 3 million tyres a year capacity during the first phase, rising to 9 million between now and 2026.