China’s Prinx Chengshan Tire to invest RM2.6 billion to set up tire factory in Kedah Rubber City – paultan.org

This is a major problem for the Malaysian tire industry, Kedah and the Northern Corridor economic region. Prinx Chengshan Holdings Ltd, through its subsidiary Prinx Tire Malaysia (PTM), will invest RM2.6 billion over 15 years to build a tire factory in Kedah Rubber City (KRC). This makes Prinx the first anchor investor of the industrial park.

The first phase of the RM1.2 billion investment will bear its first fruits in a year. Kedah Industry and Investment Committee chairman Dr Haim Hilman Abdullah said the 102.63 hectare facility is expected to start exporting its first batch of products within a year, creating 1,056 high-quality jobs in engineering, R&D and administration.

He added that PTM President Che Hongzhi indicated that several suppliers under the Prinx Chengshan Group had made preliminary commitments to invest in KRC.

“This is an encouraging achievement. On behalf of the Kedah Government, we remain committed to positioning Kedah Rubber City as a strategic investment hub. The factory is expected to export its first products within a year. We hope this becomes a reality,” Haim said at the groundbreaking ceremony yesterday, reported by NST.

The new Prinx factory and other rubber-related investors moving into KRC will initially rely on imported rubber due to insufficient local supply, but Haim said Kedah aims to mobilize local communities and farmers to meet demand. “We hope that plantation owners, national plantation companies and smallholder farmers will be mobilized to meet this demand. The opportunity is right in front of us, and not taking advantage of it would be a loss,” he said.

Shandong-based Prinx Chengshan, which also has a factory in Thailand, has four tire brands in its portfolio: Prinx, Chengshan, Austone Tires and Fortune Tires. The sector has recently suffered two losses: Goodyear Malaysia’s decades-old factory in Shah Alam was closed last year, while Continental’s tire plant in Alor Setar will end production at the end of this year.

Do you want to sell your car? Sell ​​it with Auto.