RM2.6b Prinx Tire Plant Set Anchor Kedah Rubber City Growth

Prinx Chengshan Holdings Limited is set to invest RM2.6 billion over the next 15 years to develop a major tyre manufacturing plant in Kedah Rubber City (KRC), marking the first anchor investment for the industrial park. 

The project will be undertaken by its subsidiary, Prinx Tire (Malaysia) Sdn Bhd (PTM), and is backed by the Northern Corridor Economic Region (NCER).

The development will be rolled out in two phases. The first phase, valued at RM1.2 billion, will kick-start construction of a smart, environmentally friendly facility. Phase Two will involve an additional RM1.4 billion to expand production capacity and enhance technological capabilities.

State Industry and Investment Committee chairman Dr Haim Hilman Abdullah said the 102.63-acre plant is expected to start exporting its first products within a year of operations. The project will create 1,056 high-value jobs across engineering, R&D and administrative roles.

He also noted that several vendors within the Prinx Chengshan group have expressed preliminary interest in setting up operations at KRC, signalling wider supply chain growth.

Haim said the state government remains committed to positioning KRC as a key hub for advanced rubber-based industries. He added that the long-term goal is to secure up to 80% local employment to ensure meaningful benefits and knowledge transfer for Kedah residents.

For now, the plant and incoming investors will rely on imported rubber due to limited local supply. Haim said this is an opportunity for plantation owners, national plantation firms and smallholders to boost output and support the ecosystem.

He stressed that strong collaboration with the Plantation and Commodities Ministry is essential, particularly in Malaysia’s ambition to serve as a latex supplier for PTM in the future.

NCIA chief executive Datuk Mohamad Haris Kader Sultan further added that the project will draw more high-value investors and solidify KRC’s position as a leading rubber industry hub in Southeast Asia.