I. Why Cambodia is Emerging for Tire Manufacturers
Recent data from the Cambodia Development Council (CDC) indicates that Cambodia is on track to establish two new tire factories with a total investment of approximately 2.4 billion RMB. With this development, tires made in Cambodia are set to become increasingly prominent in the global market, and the number of tire factories in the country is approaching ten.
As global demand for tires continues to rise, Southeast Asia is increasingly becoming a strategic location for tire manufacturing. Cambodia, in particular, has garnered attention from industry leaders due to its favorable investment climate and strategic geographic position. With major companies like Frico tire manufacturer entering the market, the landscape is evolving, positioning Cambodia as a key player in the tire manufacturing sector.
II. The Rise of Cambodia Tire Manufacturers
The tire industry is undergoing significant transformation, with seven Chinese tire companies now reporting annual revenues exceeding 10 billion RMB. Many of these popular tyre brands companies have expanded their operations overseas, particularly following Sailun Tire lead in establishing a factory in Vietnam in 2012. In less than a decade, over 20 factories have been set up across Southeast Asia.
Until 2021, tire manufacturers primarily concentrated in Thailand. However, post-2023, Cambodia tire production has emerged as a new investment hotspot. This shift is largely attributed to Cambodia’s exemption from major anti-dumping measures affecting key tire-consuming regions.
In 2021, the U.S. imposed tariffs on passenger car tires from Thailand and Vietnam, followed by additional tariffs on truck tires from Thailand in 2024. As these countries grapple with increased trade barriers, tire manufacturers are redirecting their focus to neighboring Cambodia.
III. Strategic Investments Attracting Global Tire Manufacturers
Looking ahead, Cambodia is set to become a focal point for tire companies seeking to expand their overseas production capacities. Initially home to only Sailun, the country now hosts seven Chinese tire companies, including General Tire, Qingdao Double Star Tire, Formax Tire, and Frico Tire. This growth highlights the potential for tires made in Cambodia to capture a larger market share.
According to U.S. data, Cambodia attracted a total investment of approximately 860 million USD (6.2 billion RMB) in April alone. Notably, while only two tire projects were signed during this period (out of 59 total investment projects), these two projects accounted for nearly 40% of the total investment, amounting to 2.4 billion RMB.
One of the new tire factories will see an investment of 1.7 billion RMB and will be constructed in the ISI Economic Zone in Sihanoukville. Another investment of about 700 million RMB will be allocated for the expansion of a factory in the Qilu Economic Zone in Preah Sihanouk Province.
IV. Popular Tyre Brands – Frico Tire Manufacturer
Among these manufacturers, Frico is making a significant impact with its newly established tire manufacturing facility. This state-of-the-art factory focuses on producing high-quality truck and passenger car tires. Frico’s truck tires are specifically designed to withstand heavy loads and long-distance travel, featuring exceptional durability and grip to ensure safe transportation. Meanwhile, the passenger car tires emphasize comfort and handling performance, enhancing the overall driving experience.
This facility aims to leverage Cambodia’s strategic advantages and favorable investment climate. Frico’s commitment to high-quality production standards and advanced manufacturing techniques is expected to enhance the overall tire supply chain in the region. The company is dedicated to technological innovation, utilizing advanced materials and designs to meet the growing market demand. By establishing this modern production facility in Cambodia, Frico is gradually becoming a popular tyre brands in the global tire industry, providing superior tire solutions that cater to diverse customer needs while contributing to the region’s economic growth.
V. Regional expansion of tire manufacturer
Beyond Cambodia, Indonesia and Malaysia have also experienced an influx of Chinese factories in recent years. Currently, the Malaysian factory of Prinx Chengshan is under development, while factories in Indonesia operated by Zhongce Rubber and Sailun Tire are already in production.
This diversified overseas factory layout is a strategic move for tire companies to mitigate anti-dumping pressures.
VI. Conclusion
As Cambodia continues to attract significant investment in tire manufacturing, it solidifies its position as a key player in the Southeast Asian market. The entry of Cambodia tire manufacturer, like Frico Tire, coupled with ongoing investments, promises to enhance local production capabilities and pave the way for further economic growth in the region. With the right strategies and support, Cambodia is poised to thrive as a manufacturing hub, offering opportunities for innovation and collaboration in the global tire industry.
