Year-End Push to "Global No. 2"! Zhongce Thailand Factory Phase IV Expansion Accelerates

Recently, local Thai media visited the Zhongce Rubber Thailand factory located in Rayong Province. Currently, the factory is undergoing Phase IV expansion to increase production capacity and support business growth. To meet the requirements of OEMs, the Phase IV expansion project adopted a large number of automated systems. Zhongce Rubber strives to build it into the world's second-largest production base by the end of this year—once this goal is achieved, Zhongce's global layout will reach a new level.

Deep Localization: "Thai Roots" from Employees to the Supply Chain

As the core fulcrum of Zhongce Rubber's global strategy, the localized operations of the Thailand factory are exemplary. The factory currently has about 7,300 employees, of whom 95% are Thai nationals, creating significant employment for the local area. In the supply chain, the factory's natural rubber supply is 100% from Thailand, with an annual consumption of about 170,000 tons; about 50% of raw materials such as carbon black and rubber additives are purchased locally in Thailand, and 50% are imported from China. Since the beginning of this year, the factory has also invested significant funds in the recycling of renewable resources, with green manufacturing and local integration proceeding in parallel.

Supplying High-End Markets: Breaking into BYD and Great Wall Supply Systems

In terms of the market, Zhongce Thailand factory products are mainly exported to Europe and America, with only 10%-15% used domestically in Thailand. More significantly, the factory has successfully entered the supply systems of top Chinese automakers such as BYD and Great Wall, as well as some Japanese and Thai OEMs. From "Product Going Global" to "Brand Supplying", it marks that the manufacturing quality and international competitiveness of Zhongce Thailand factory have received recognition at the OEM level.

Zhongce Thailand: A Profitability Benchmark, Ten Years of Going Global Bearing Fruit

As the first overseas production base of Zhongce Rubber, the factory started production in 2015 and now has an annual tire production capacity of 20 million sets. It is not only one of the companies with the highest profitability among Chinese tire enterprises in Thailand, but also the branch with the highest profitability within Zhongce. Products are popular in Southeast Asia and exported far to Europe and America, effectively avoiding trade barriers from Europe and America, becoming the most solid cornerstone in Zhongce's global map.

Industry Pioneer Leads, Chinese-Funded Tire Armada Clusters in Thailand

Zhongce's success also led the tide of Chinese tire enterprises going global. Since 2014, facing tariffs on tires imposed on China by multiple countries, Thailand has become the preferred location for Chinese enterprises to build factories: Linglong Tire Thailand factory's annual capacity reached 17.2 million sets, with the supply market share of new energy vehicle tires reaching nearly 24% in 2023; Sentury Thailand factory's annual capacity reached 12 million high-performance semi-steel tires, becoming a core profit engine; companies such as Pullman Chengshan, Double Coin, General Shares, and Langma have also successively laid out in Thailand, with most achieving good development.

From the first tire rolling off the line in 2015 to rushing to become the "Global No. 2 Production Base" in 2025, the ten years of the Zhongce Thailand factory are precisely a microcosm of Chinese tire enterprises moving from "Going Global" to "Walking Steady and Strong". After the completion of the Phase IV expansion, this "Tire Giant" by the Gulf of Thailand will inject stronger momentum into Zhongce's global strategy; its next moves deserve continuous attention from the industry.