The closure of several tyre manufacturing factories in Malaysia might have indicated a dip for the industry, but that appears to be on an upturn with a massive RM2.6 billion investment in tyre manufacturing by China’s Prinx Chengshan Holdings, via its local subsidiary Prinx Tire Malaysia (PTM), in the Kedah Rubber City (KRC).
The investment makes Prinx the industrial park’s first anchor investor with the amount spread over 15 years in developing a tyre manufacturing plant, according to the New Straits Times.
An initial RM1.2 billion will kickstart the first phase of a 102.63-acre eco-friendly facility, which will roll out the first batch of rubber products within a year to be exported. This will create 1,056 jobs in engineering, R&D and administration. Phase Two will follow with an investment of RM1.4 billion.
Of those jobs, the state is expecting 80% to be taken up by Kedah residents for maximum benefits and knowledge transfer to transform the state into a rubber powerhouse.
“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 plant is expected to export its first products within a year. We hope this becomes a reality,” said Kedah Industry and Investment Committee chairman Dr Haim Hilman Abdullah.
Additionally, PTM president Che Hongzhi has indicated that a number of vendors under the Prinx Chengshan Group have initially committed investments in KRC as well.
Initial operations for Prinx and other rubber manufacturing in KRC will rely on imported latex and rubber as local supply is insufficient. Nonetheless, Haim said that Kedah will move to encourage local communities and growers to increase production and meet the required demand.
“We hope plantation owners, national plantation firms and smallholders will be mobilised to meet this demand. The opportunity is right before us, and not seizing it would be a loss,” he added.
KRC is the first dedicated Rubber Industrial Park in Malaysia that covers an area of 1,244 acres and aims to boost the development of Malaysia’s rubber industry.
Prinx Chengshan is based in the Shandong province but also operates a plant in Thailand. The group currently has four brands under its umbrella; Prinx, Austone Tires, Chengshan and Fortune Tires.
Despite the closure of the Goodyear plant in Shah Alam and the impending shutdown of the Continental facility in Alor Setar by the year’s end, Prinx’s investment is a boost to the local rubber industry and manufacturing sector as a whole.
Apart from the new development at KRC, another tyre manufacturing facility exists at the Kuantan Indsutrial Park, Pahang. It is the first plant operated outside of China by Maxtrek (Zhaoqing Junhong Corp. Ltd.) under the Antares brand and produces tyres for passenger cars and commercial vehicles.
“PTM’s decision to establish its facility here will act as a catalyst for a new wave of high-value investments, positioning Kedah Rubber City as a leading rubber industry hub in Asean,” Haim ended.
