Manufacturing & Supply Chain

Prinx Chengshan Breaks Ground on Kedah Rubber City Tyre Plant

Published:
Nov 25, 2025 9:33 AM
Author:
James Lockwood
Malaysia welcomes Prinx Chengshan’s Industry 4.0 tyre plant in Kedah.

Prinx Chengshan has commenced construction of its new manufacturing facility in Malaysia, marking a significant expansion of the Chinese tyre maker's Southeast Asian production footprint.

The company recently broke ground on the factory at Kedah Rubber City in Kedah state, located 138 kilometres from Penang Port and 15 kilometres from the Thai customs crossing. The project will occupy 102.63 acres, with Phase I establishing annual production capacity of 6 million premium passenger car tyres and 600,000 commercial vehicle tyres.

Chengshan Group Chairman Che Hongzhi joined Vice President Shi Futao and Prinx Tire (Malaysia) General Manager Cao Kai alongside Malaysian dignitaries to witness the groundbreaking ceremony.

The move follows a year of regulatory scrutiny and recovery steps at Prinx Chengshan’s Thai facility. Tyre News recently reported the site’s trial restart under IEAT oversight and a subsequent pause pending review, followed by an embassy visit noting normal operations. These developments underline why dual-site ASEAN capacity could strengthen continuity of supply.

Strategic 'twin stars' configuration

In his address, Chairman Che emphasised that the Malaysian facility represents another strategic overseas foothold following the company's Thailand base, creating a "twin stars" configuration with the Thai factory.

"This will not only significantly expand our global production capacity, build a more resilient global supply chain network, and deliver faster and superior services to our global customers, but hold pivotal strategic significance for Prinx Chengshan's sustainable high-quality development as well," Che stated. "This project responds to the 'Belt and Road' initiative whilst deepening China-Malaysia industrial cooperation."

Economic impact and employment

The facility is expected to create over 1,000 production jobs whilst boosting local suppliers and infrastructure development. Prinx Chengshan says the factory will enhance regional supply chain connectivity and establish itself as a northern manufacturing benchmark to propel industrial growth across ASEAN.

Industry 4.0 manufacturing

Drawing extensively from its intelligent factory experience in China and Thailand, the Malaysian plant will feature three functional zones encompassing production, R&D/office space and residential quarters. The facility integrates six core sections: raw material warehouse, moulding shop, mixing shop, curing shop, semi-finished product shop and testing shop, achieving lean end-to-end production distribution.

A specially designed fully automated warehouse will establish an unmanned dispatching link from raw material warehousing to finished product delivery. Combined with 5G digital collaboration and intelligent quality inspection systems, this will create an Industry 4.0 production scenario characterised by "minimal human intervention, high efficiency and precision", according to the company.

The strategic location in Kedah Rubber City positions Prinx Chengshan to serve both Southeast Asian markets and facilitate exports to global destinations through nearby port infrastructure.

Tagged with: Prinx Chengshan, Kedah Rubber City, Malaysian tyre plant, ASEAN supply chain, Industry 4.0, automated warehouse, PCR tyres, commercial vehicle tyres, passenger car tyres, export logistics, 5G inspection

Disclaimer: This content may include forward-looking statements. Views expressed are not verified or endorsed by Tyre News Media.

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