Cambodia’s rubber sector marked a new milestone in 2021 as Cart Tire Co Ltd, a subsidiary of Sailun International Holding (Hong Kong) Co Ltd, successfully shipped the first batch of domestically produced tires for export. This event signals the country’s initial step into high-value rubber product manufacturing and a broader economic diversification effort.
A Turning Point for Cambodia’s Rubber Sector
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Industry experts see this first tire export shipment as a breakthrough, offering confidence and stability for both local rubber farmers and investors transitioning toward downstream processing industries.
According to Mr. Men Sopheak, CEO of Sopheak Nika Investment Agro-Industrial Plants Co Ltd, this event represents a promising start for Cambodia’s rubber sector. “It’s a very positive sign. Farmers now have more confidence, knowing that locally produced rubber can be used domestically to create finished products for export,” he shared with The Phnom Penh Post.
Historically, nearly all of Cambodia’s natural rubber output was exported as raw material. Now, Cart Tire Co Ltd plans to purchase a significant portion of locally sourced natural rubber to produce tires for export to the United States and Europe.
Boosting Local Value and Farmer Confidence
Mr. Lim Heng, Vice President of the Cambodia Chamber of Commerce, hailed this development as a major milestonein Cambodia’s export diversification strategy. He emphasized that the company’s use of 100% local rubber could eventually absorb up to 50% of Cambodia’s total domestic rubber output once the factory operates at full capacity.
He added that the company’s success would enhance Cambodia’s reputation for quality exports while stabilizing the market and prices for rubber farmers. Locally made tires could also supply Cambodia’s emerging automotive assembly sector, which has been growing steadily in recent years.
Foreign Investment Expanding in Automotive Manufacturing
The Council for the Development of Cambodia (CDC) recently approved multiple investment projects in the automotive sector, reflecting growing foreign investor interest. Among them are:
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A USD 21 million vehicle and parts assembly plant by RMA Automotive (Cambodia) in Pursat Province.
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A USD 16.3 million heavy-truck, trailer, and machinery assembly project in Koh Kong Province.
These initiatives highlight Cambodia’s gradual shift from light manufacturing (e.g., garments) to medium- and heavy-industry production, supported by the integration of rubber-based products such as tires.
Large-Scale Production and Future Outlook
In its first operational year, Cart Tire’s factory will require approximately 50,000 tons of natural rubber, and up to 150,000 tons annually by its fifth year — equivalent to around 43% of Cambodia’s 2021 total rubber output.
Approved by the Cambodian government earlier in 2021, the USD 350 million tire manufacturing plant spans 50 hectares in the QiLu Special Economic Zone.
Additionally, Jiangsu General Tire plans to open another USD 200 million tire factory in Preah Sihanouk Provinceby mid-2022, with an annual capacity of 6 million tires.