The construction of the Wanli plant in Cambodia has begun

On January 12, the Chinese company Wanli Tires, which is part of the Guangzhou Industrial Investment Holdings Group (GIIHG) holding, held a groundbreaking ceremony for a new factory with a capacity of 10 million passenger and 1.2 million truck tires in the city of Bavet (Svay Rieng Province, Cambodia).

For Wanli, the new factory, with a total cost of around $500 million, will be the company's first production site outside of China, allowing GIIHG to "accelerate the implementation of its business globalization strategy and actively participate in the implementation of the 'One Belt, One Road' initiative".

In the first phase, the investment amount will be $239 million, the complex area will be 32 hectares, and the capacity will be 6 million passenger tires per year. It is expected that the factory will eventually employ at least 1,000 people. Wanli notes that the enterprise will implement digital management and automation technologies, and the company will be able to improve its competitiveness in the Southeast Asian market.

In recent years, Cambodia has become an attractive destination for investments from Chinese tire manufacturers (such as Doublestar, Sailun, ZODO, etc.), and in January-November 2024, the country exported passenger tires worth $772.5 million, which is 135% more than in the same period last year.

As noted by the Secretary of State and Spokesperson of the Ministry of Commerce of Cambodia Penn Sovicheat, the growth is due to the successful efforts of the kingdom to promote exports. "The Comprehensive Regional Economic Partnership Agreement (RCEP) and bilateral free trade agreements with China, South Korea, and the UAE have provided wider access to markets for products made in Cambodia," he told Xinhua.

Wanli is also increasing its capacity within China, and at the end of 2024, it was announced that a new production line would be launched at the factory in Conghua (Guangzhou, Guangdong). The factory's capacity will increase to 30 million tires per year, making it one of the largest tire production enterprises in the country.

To strengthen its presence in the international market, the company, in particular, demonstrates its products at various industry exhibitions. For example, in November last year, Wanli participated in the SEMA show in Las Vegas, where, as reported, it received new orders worth $20 million and signed agreements on potential cooperation with five leading American distributors, which are expected to purchase 4 million tires per year.