Zhongce Rubber secures approval for $500 million plant

Zhongce Rubber secures approval for $500 million plant

Chinese tyre maker Zhongce Rubber is investing $500 million in a new manufacturing plant in Ho Chi Minh City, with the project approved and land subleased this week.

Photo: IDICO

On November 12, Ho Chi Minh City Export Processing and Industrial Zones Management Authority and IDICO Corporation held a ceremony to grant approval and sign the land sublease agreement with Zhongce Rubber Vietnam Co., Ltd. The plant will sit in IDICO Phu My II Expansion Industrial Park, covering 34.42 hectares and focusing on tyres and other products for the tyre industry.

Established in 1958 in Hangzhou, China, Zhongce Rubber is one of the world's major tyre manufacturers. According to information released by the group, it has ranked first in revenue among tyre makers in mainland China since 2009 and has been among the world's 10 largest tyre manufacturers since 2012.

The project at IDICO Phu My II Expansion Industrial Park is central to the group's strategy to expand its manufacturing operations and global supply chain. With the total registered investment capital of $500 million, it will be developed in two phases.

Phase 1 is designed to produce three million semi-steel radial passenger car tyres and one million all-steel radial truck and bus tyres a year. Phase 2 is expected to add annual capacity of two million passenger car tyres, 500,000 truck and bus tyres, and 150,000 tonnes of rubber compounds. Under the group's plan, Phase 1 is expected to begin operations in July 2028, followed by Phase 2 in July 2030.

The plant's products will primarily serve export markets while also meeting demand in Vietnam and Southeast Asia. Once operational, it is expected to strengthen the tyre industry's supply chain, support the growth of supporting industries, logistics, and related services, create jobs, and contribute to Ho Chi Minh City's socioeconomic development.

IDICO Phu My II Expansion Industrial Park is one of the key industrial hubs in southern Vietnam, with direct links to the Cai Mep – Thi Vai deepwater port complex, regional transport networks, and international freight routes. These advantages ease the import of raw materials, manufacturing operations, and the export of finished products.

VIR