Sailun Cambodia plant increases tyre production capacity by 6 million units

On 30 October, Sailun stated that it plans to invest 1.47 billion yuan (approximately £170 million; €190 million) to build a semi-steel radial tyre project in Cambodia with an annual output of 6 million units. According to the tyre manufacturer, as the competitiveness of tyre products at Cambodian factories has continued to improve in recent years, existing production capacity can no longer meet existing customer orders. It is reported that the newly added semi-steel radial tyre products will be mainly targeted at overseas markets such as North America.

Currently, Sailun is working with Cart Tire in Cambodia, making Cart Tire responsible for its local factory operations. Data show that Cart Tire invested in constructing an “annual production capacity of 9 million semi-steel radial tyres” project in 2021 and an “annual production capacity of 1.65 million all-steel radial tyres” project in 2022. After the new production capacity is reached, Cart Tire’s annual production capacity will be 15 million semi-steel radial tyres and 1.65 million all-steel radial tyres. To meet the daily operating needs of Cart Tire, Sailun decided to use $90 million of its funds to increase capital in the Cambodian company on October 30.

In 2022, Cart Tire’s revenue and net profit were $120 million and $4.5 million. In the first nine months of 2023, these figures reached $215 million and $45.45 million.

According to the plan, the construction period of the project, with an annual output of 6 million tyres, is 12 months, and Cart Tire will provide the funding source in the form of its funds and loans from financial institutions. The specific construction period will depend on local construction conditions and the availability of project funds. However, according to the “specific planning content” announced by Sailun, the time is 2023-2024.