Chinese tyre maker kickstarts Kedah Rubber City with RM2.6 billion development
KUALA NERANG: Prinx Chengshan Holdings Limited, through its subsidiary Prinx Tire (Malaysia) Sdn Bhd (PTM), will invest RM2.6 billion over 15 years to build a tyre manufacturing plant at Kedah Rubber City (KRC), becoming the industrial park's first anchor investor.
The smart and eco-friendly plant, supported by the Northern Corridor Economic Region (NCER), involves RM1.2 billion for Phase One of its implementation and RM1.4 billion for Phase Two.
State Industry and Investment Committee chairman Dr Haim Hilman Abdullah said the 102.63-acre facility is expected to begin exporting its first batch of products within a year, creating 1,056 high-value jobs in engineering, research and development, and administration.
He said PTM president Che Hongzhi had also indicated that several vendors under the Prinx Chengshan group have given preliminary commitments to invest in KRC.
"This is an encouraging achievement. On behalf of the Kedah government, we remain committed to positioning KRC as a strategic investment hub.
"The plant is expected to export its first products within a year. We hope this becomes a reality," he said at a press conference after the ground-breaking ceremony today. Also present was Northern Corridor Implementation Authority (NCIA) chief executive Datuk Mohamad Haris Kader Sultan.
KRC is one of the federal government's national strategic projects implemented by NCIA to strengthen Malaysia's position in high-value rubber manufacturing and establish the nation as a global hub for rubber-based industries.
Haim said the state was targeting up to 80 per cent local recruitment to maximise benefits for Kedah residents and ensure meaningful knowledge transfer.
"We want our people to not only work with rubber technology, but to eventually master it," he said.
He said the new factory, along with future rubber-related investors entering the zone, would initially rely on imported rubber due to insufficient local supply. However, the state aimed to mobilise local communities and growers to meet the 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 said.
He added that long-term plans would require strong commitment from the Plantation and Commodities Ministry to explore how Malaysia could eventually become a latex supplier for PTM.
Meanwhile, Haris said the investment by a global industry leader confirmed the strategic value and potential of KRC.
"PTM's decision to establish its facility here will act as a catalyst for a new wave of high-value investments, positioning KRC as a leading rubber industry hub in Asean," he added.