EUDR forest

Cambodia's Rubber Industry Shows Strong Growth in 2024

house Suharsh Mittal Feb 20, 2025

Cambodia's rubber sector demonstrated impressive performance in 2024, with total export earnings from rubber latex and rubber wood exceeding US$671.78 million. This represents a significant 36.48% increase (US$150 million) compared to 2023, primarily driven by higher global rubber prices resulting from tight supply amid strong demand.

According to the General Department of Rubber (GDR) under Cambodia's Ministry of Agriculture, Forestry, and Fisheries, rubber latex exports alone generated US$666.25 million. The average international price for Cambodian rubber latex increased dramatically to US$1,971 per tonne in 2024, a 47% jump (US$634 per tonne) over 2023 levels.

Production Up, Exports Down Due to Domestic Consumption

While rubber exports decreased by 30,048 tonnes (8.16%) year-over-year to 338,000 tons in 2024, overall production actually increased. Cambodia's rubber production reached 407,209 tons in 2024, up 15,410 tons or 3.93% compared to the previous year.

The decline in exports is attributed to Cambodia's growing tire industry, which absorbed a significant portion of domestic rubber production. "Three tire factories in Cambodia started tire production in 2024. They consumed over 58,000 tons of domestic rubber, valued at approximately US$96.4 million," according to an official source.

This trend is expected to continue in 2025, with domestic tire factories anticipated to increase their consumption, further impacting exports. However, with global rubber prices remaining high, rubber producers expect domestic tire manufacturers to offer competitive prices to prevent them from directing their products to export markets.

Tire Manufacturing Expansion

Cambodia currently hosts three full-fledged tire plants operated by Chinese-owned companies:

  • Newbustar (Cambodia) Tire Co Ltd in Kratie
  • General Tires Technology (Cambodia) Co Ltd in Preah Sihanouk
  • Cart Tire Co Ltd in Svay Rieng province (controlled by Sailun)

Significant expansion is underway, with Sailun planning to double its Svay Rieng capacity. Cart Tire Co. Ltd. will invest US$93.48 million to increase production of all-steel radial tires, with US$61.18 million allocated for production expansion and US$32.30 million for additional working capital.

"The project is expected to achieve an average annual operating income of US$244.73 million," Sailun stated in a filing with the Shanghai Stock Exchange. Upon completion by the end of 2025, Cart Tire's production is projected to increase from 35,000 to 22 million tires, consuming 500 tons of rubber daily—approximately 30% of Cambodia's rubber output.

Future Growth: Four More Tire Factories in Development

Four additional tire factory projects are in various stages of development in Cambodia:

  • Chinese Wanli Tire in Svay Rieng Province
  • Shouguang Firemax in Svay Rieng Province
  • Zodo Tire in Sin Bavet city, Svay Rieng Province
  • An undisclosed operator at UBE Snuol Special Economic Zone in Kratie province (US$430 million investment)

In early January 2025, Guangzhou-based Wanli Tires held a groundbreaking ceremony for its Cambodia production base at Xin Bavet Special Economy Zone. The facility will have a capacity of 10 million semi-steel radial tires and 1.2 million all-steel radial tires, representing Wanli Tire's first step in its global strategic expansion. The first phase will produce 6 million semi-steel radial tires annually, with a total investment of approximately US$239 million on a 32-hectare site.

Government Support and Future Outlook

Cambodian Deputy Prime Minister Sun Chanthol, who attended Wanli Tire's groundbreaking ceremony, highlighted the close relations between Cambodia and China under the "One Belt, One Road" Initiative. He expressed confidence that more large-scale Chinese enterprises would invest in Cambodia.

The Zodo Tire plant, announced last year, aims to produce 6 million passenger car tires and 1.2 million truck and bus radial tires annually, with an investment exceeding US$255 million and plans to employ nearly 1,500 people. Similarly, Shouguang Firemax's US$190 million plant will produce 8 million passenger car radial tires and 1.2 million truck and bus radial tires annually.

Industry experts predict that higher global prices and the emergence of more Chinese-backed tire firms in Cambodia will boost investment in rubber plantations. The area of rubber plantations in Cambodia has already increased from 407,170 hectares in 2023 to 425,440 hectares in 2024, with 77% of this area being tappable. Smallholders own 47.5% of the total plantations, while estates control 52.5%.

Cambodia now hosts 179 rubber processing factories serving tire and non-tire industries, including 56 rubber processing factories, one rubber water processing factory, 101 rubber sheet processing factories, and 21 rubber wood processing factories.


Source: Analysis based on an a publication by Helixtap Technologies.