China’s General Science’s Cambodian subsidiary recently held a ceremony for the first batch of tyres to roll off the production line at the second phase of its tyre facility located in Sihanoukville Special Economic Zone.
The project started construction in January 2024 and took seven months to complete with the first tyre having rolled off the production line recently.
Chairman Gu Cui, General Manager of Overseas Company Gu Yahong and others attended the ceremony. This project is another breakthrough following the full production of the first phase of the Cambodia factory in May this year. It marks the further release of GS’s high-performance, green and high-quality overseas production capacity, and a new step in the internationalisation strategy process, it adds.
It is understood that the Cambodia base of GS is the second production base established overseas by the company after the production base in Thailand in response to the “Belt and Road” initiative.
After the first phase of the project was put into production in 2023, orders continued to be full, production and sales were booming, and full production was achieved in just one year, achieving the goal of “production and profitability in the same year”, becoming the company’s new performance growth engine.
The designed production capacity of the Phase II project includes 3.5 million semi-steel radial tyres and 750,000 full-steel radial tyres/year. After full production, it is expected to achieve an average annual revenue of 1.701 billion yuan and an average annual net profit of 231 million yuan.
According to data from the Cambodian Ministry of Commerce, Cambodia’s exports of automobile tyres reached US$370 million in the first half of 2024, an increase of 188% over the same period last year. For Chinese tyre companies with production bases in Cambodia, including GS, their brand competitiveness and cost-effectiveness will be further highlighted.
As well, in the first half of 2024, GS’s domestic OTR off-road tyre technical transformation project, 6 million semi-steel tyre technical transformation project and Thailand Phase II 10 million project have been put into production one after another.
At the same time, the company adds it has launched site selection and investigation for new overseas bases for future growth.