Prinx Chengshan to build a plant in Malaysia
Chinese company Prinx Chengshan Holdings has officially announced that it will build a new tire plant in the Kedah Rubber City (KRC) industrial park in the Padang Terap district (Kedah state, Malaysia). The new enterprise will be Prinx Chengshan's second outside of China - the company already owns a plant in Thailand - and will be invested with 2.76 billion yuan (around $280 million).
Construction work is planned to begin in the second quarter of this year, and in the second half of 2026, the plant is expected to launch trial production. The plant is expected to reach its planned capacity of 6 million passenger tires and 600,000 truck tires in 2027-2028, with a projected annual turnover of around $270 million.
Malaysia is one of the world's largest suppliers of natural rubber, making it attractive to tire manufacturers, and recently, Chinese Shandong New Continent Tire also announced plans to build a tire plant in the country. The KRC industrial park, which is expected to accelerate the development of the rubber industry in the country, is located near the Malacca Strait, a major transportation route that allows goods to be delivered to both Southeast Asian countries and the global market.
Prinx Chengshan has been actively expanding its sales in recent years, and last year, the company's turnover exceeded 10 billion yuan for the first time, reaching 10.974 billion yuan ($1.51 billion), an increase of 15.3% compared to 2023. Net profit grew by 18.6% to 1.312 billion yuan ($180 million), and net margin reached 12%, also a record high for the company.
The decision to localize production in Malaysia is expected to allow Prinx Chengshan to effectively bypass barriers in global trade and optimize its supply chains in both Southeast Asia and the rest of the world. The Malaysian Investment Development Authority (MIDA) noted that they will support investors from Chinese tire manufacturers, for example, through tax incentives. The Prinx Chengshan project is expected to create around 800 new jobs in the country and will also benefit local rubber producers.
Prinx Chengshan, which has a history dating back to 1976, produces tires of various categories under the brands Austone, Chengshan, Fortune, and Prinx. In 2022, the company's production capacity was nearly 30 million tires.
Photo: tanhei.com