China’s Triangle Tyre Soars on $462M Cambodia Factory Plan

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Shares of the major Chinese tire manufacturer soared to the daily limit after announcing a plan to invest 3.2 billion yuan (approximately USD 462 million) in establishing its first overseas manufacturing facility in Cambodia. This strategic move aims to enhance its global market presence.

The company’s stock, listed on the Shanghai Stock Exchange under the ticker SHA: 601163, hit the maximum daily increase of 10 percent right at the opening and closed at 15.53 yuan (about USD 2.20).

In a statement released yesterday, the firm revealed plans to set up production lines in Svay Rieng Province, with an annual capacity to produce six million semi-steel radial tires and one million all-steel radial tires. The majority of these tires will be exported to regional markets—including North America, Europe, the Middle East, Africa, and Southeast Asia.

Semi-steel radial tires are mainly used in passenger cars, whereas all-steel radial tires are typically used in heavy-duty trucks, construction vehicles, and specialized machinery.

This new manufacturing plant marks a significant step in the company’s renewed overseas expansion efforts. It follows a previous plan to build a factory in North Carolina, United States, which was canceled in 2022 due to changing external factors such as the investment climate and the ongoing COVID-19 pandemic.

Construction of the Cambodia plant is expected to begin in March, with an estimated build time of approximately 17 months. Once operational, the project is projected to deliver an average annual return of 15.1 percent and generate about 2.6 billion yuan in annual operating income.

Locating the facility in Cambodia leverages the country’s advantages as a producer of natural rubber and benefits from lower land and labor costs. These factors are expected to reduce tariffs and increase profitability. The new plant will also complement the company’s existing domestic facilities, allowing for optimized resource use and greater resilience in production capacity.

This manufacturer is a leading supplier of tires for commercial and engineering vehicles in China. Last year, it produced 24.5 million tires and reported nearly 6 billion yuan in overseas revenue—representing almost 60 percent of its total revenue for 2024.