Prinx Chengshan Invests RM2.6 Billion in New Tyre Manufacturing Facility at Kedah Rubber City
Despite recent closures in Malaysia’s tyre manufacturing sector, the industry is showing renewed promise with a major RM2.6 billion investment by China’s Prinx Chengshan Holdings. Through its local subsidiary, Prinx Tire Malaysia (PTM), the company is establishing a new tyre manufacturing plant in Kedah Rubber City (KRC), marking a strong revival for the sector.
The investment positions Prinx as the first anchor investor in KRC, channelled over 15 years to build an advanced, eco-friendly facility.
A Two-Phase Development Worth RM2.6 Billion
Phase One will begin with an initial RM1.2 billion investment to develop a 102.63-acre facility designed with modern, sustainable manufacturing features. The plant is expected to export its first batch of rubber products within a year, significantly accelerating Malaysia’s role in global tyre production.
The first phase alone will create 1,056 job opportunities across engineering, R&D and administrative roles. Phase Two will follow with an additional RM1.4 billion investment.
Boosting Local Employment and Knowledge Transfer
The Kedah state government anticipates that 80% of the new jobs will be taken up by local residents, promoting local workforce development and maximising knowledge transfer.
“This is an encouraging achievement. The state remains committed to positioning Kedah Rubber City as a strategic investment hub. We look forward to seeing the plant achieve its first exports within a year,” said Dr. Haim Hilman Abdullah, chairman of the Kedah Industry and Investment Committee.
More Vendors Expected to Follow
PTM president Che Hongzhi revealed that several vendors under the Prinx Chengshan Group are also preparing to invest in KRC, signalling strong long-term growth for the rubber ecosystem.
Initially, operations will rely on imported latex and rubber due to insufficient local supply. However, Kedah aims to encourage local plantations, smallholders and major estate owners to ramp up production to meet increasing demand.
“We hope local growers can be mobilised to seize this opportunity. Failing to do so would be a missed chance,” Haim added.
Kedah Rubber City: Malaysia’s First Dedicated Rubber Industrial Park
Covering 1,244 acres, Kedah Rubber City is Malaysia’s first specialised rubber industrial zone, designed to accelerate the growth of advanced rubber manufacturing and attract global investors.
Prinx Chengshan, headquartered in Shandong, China, also operates a facility in Thailand and manages four tyre brands: Prinx, Austone, Chengshan, and Fortune Tires.
A Positive Sign Despite Industry Challenges
The recent closure of the Goodyear plant in Shah Alam and the expected shutdown of Continental’s Alor Setar facility had raised concerns about the future of tyre production in Malaysia. However, Prinx’s RM2.6 billion commitment signals renewed confidence in Malaysia’s manufacturing ecosystem.
Besides the new development at KRC, another tyre plant in Malaysia is operated by Maxtrek (Zhaoqing Junhong Corp. Ltd.) under the Antares brand at the Kuantan Industrial Park, producing tyres for passenger and commercial vehicles.
“PTM’s decision will act as a catalyst for high-value investments, positioning Kedah Rubber City as a leading rubber industry hub in ASEAN,” Haim concluded.
