CEOCambodiaNews wrote: ↑Tue Feb 21, 2023 3:06 pm New Doublestar factory in Cambodia
Date: 20th February 2023

Before investing in the Cambodian factory, Doublestar was involved in the expansion of Kumho’s factory in Vietnam (Photo: Doublestar)

On 20 February 2023, the board of directors of Doublestar reviewed and approved the proposal to build a factory in Cambodia. The tyre manufacturer reportedly plans to establish a joint venture with UBE Development Co., Ltd in order to complete the plans.
https://www.tyrepress.com/2023/02/new-d ... -cambodia/

UPDATE

‘$138 million’ tyre plant breaks ground in southeastern Kratie
May Kunmakara | Publication date 10 May 2023 | 21:26 ICT
Ground broke on Newbustar (Cambodia) Tire Co Ltd’s tyre factory on May 9, in the southeastern corner of Kratie province, which according to the provincial governor, is backed by an investment of $138 million and has an annual production capacity of 8.5 million units.

Newbustar is part of the Chinese state-owned Doublestar Group, which has a Shenzhen-listed member: Qingdao Doublestar Co Ltd. The factory will be built on a 40ha plot in the UBE Snuol Special Economic Zone of Trapaing Sre village, Pi Thnou commune, Snuol district, the Kratie Provincial Administration affirmed.

Speaking while presiding over the groundbreaking ceremony for the plant, Kratie provincial governor Va Thorn revealed that the first phase of the project is scheduled to be completed in October, and noted that its investors are “from Qingdao, Shandong province” in China.

Qingdao Doublestar earlier this year said in a statement that the factory would be backed by a 1.4 billion yuan ($200 million), and have annual production capacity of 8.5 million “high-performance” radial tyres – seven million semi-steel and 1.5 million all-steel. Construction was planned to be completed in 15 months, it said.

Once fully operational, the factory is expected to generate average annual sales of 2.8 billion yuan and net profit of about 550 million yuan, the statement said, adding that the facility constitutes part of its “localisation” strategy and is to “actively respond” to international trade barriers, given the “high tariffs” imposed on Chinese goods.

By shifting production to the Kingdom, Doublestar could avoid the risk of anti-dumping action in its major markets, it added.
https://www.phnompenhpost.com/business/ ... ern-kratie

Chinese Tiremakers Bet on Recovery via New Plants in Cambodia, Thailand
Liao Shumin
DATE: 18 hours ago
(Yicai Global) May 29 -- Manufacturers in China, the world's largest producer and exporter of tires, are building factories abroad in an optimistic mindset to meet rebounding market demand.

China's rubber tire exports reached CNY12.7 billion (USD1.8 billion) in April, up nearly 22 percent from a year ago, according to customs data. Shipments totaled 730,000 metric tons, a 14 percent uptick.

Demand at home and abroad is recovering, Securities Daily reported today. Sailun Group, a Qingdao-based manufacturer, said that domestic orders are high with sufficient production capacity, and orders for semi-steel tires aboard have risen to levels seen in the first half of last year.

China is the biggest tire nation as the country's annual output makes up more than half of the global total. But lately, many firms have started building plants abroad and especially in Cambodia, the main producer of rubber for tires.

As domestic and foreign demand improve, tire companies increase supply while Cambodia is showing signs of becoming a trending destination for new plants, according to Xing Xing, director of Bestar Securities' research institute.

One of those early adopters is China's Doublestar Tire Industrial. Earlier this month, the firm started constructing its USD200 million plant in northeastern Cambodia with an annual production capacity of 8.5 million radial tires.

Moreover, Jiangsu province-based General Science Technology kicked off operations at its Cambodia factory a week ago. This makes the company one of the few Chinese tiremakers to have plants in two foreign countries, according to Chairman Gu Cu.
https://www.yicaiglobal.com/news/202305 ... a-thailand

Interestingly enough, at present, Cambodian tyre factories are importing their rubber material and do not use locally grown latex, while Cambodian produced rubber is being shipped overseas.

New tyre factories tipped to soak up local latex supply
Hin Pisei | Publication date 13 August 2023 | 19:34 ICT
Two companies are assessing site plans to build a tyre factory in Cambodia, amid the operation of three tyre factories.

According to the Cambodian Oknha Association (COA), Cambodia continues to export thousands of tonnes of rubber every year although there are tyre making factories in special economic zones in Svay Rieng, Sihanoukville and Kratie.

Council for the Development of Cambodia (CDC) deputy secretary-general Chea Vuthy said the car tyre industry in Cambodia is showing remarkable positive signs, with two companies currently looking for a site for the factory.

It is estimated that about 200,000 tonnes of natural latex produced in Cambodia per year would be absorbed locally when all five companies are in full production.

At present, Cambodia harvests around 500,000 tonnes of latex, with 300,000 tonnes exported officially and another 200,000 tonnes shipped out unofficially, he said quoting figures from the Cambodia Rubber Plantation Association.

“Since there is no domestic market, almost all quantities are shipped to international markets,” Vuthy said during the Cambodia Business Forus 2023, which was organised by COA on August 11.

“I have tried to discuss with the companies, urging them to buy local latex. To produce car tyres, they need about 100 components and raw materials but in Cambodia, we have only one natural latex that can contribute to the production chain,” he shared.

So far, only one of the three factories buys Cambodian latex, Vuthy said, adding that in the past five months, the company has bought 14,000 tonnes of local latex.

Most of the raw material for the production of car tyres in Cambodia is imported from neighbouring countries.

Cambodia Chamber of Commerce vice-president Lim Heng told the Post that increased investment in car tyre factories will help to raise the market demand for domestic latex.
https://www.phnompenhpost.com/business/ ... tex-supply