Chinese tyre manufacturer Wanli Tire plans to establish a tyre manufacturing plant in Hulu Selangor, Selangor, marking the company's first manufacturing facility in Malaysia and its second production plant outside China, following its existing overseas facility in Cambodia.

The proposed investment is estimated at approximately MYR 1.4 billion (US$ 335.3 million), with the facility expected to have an annual production capacity of 6.2 million tyres when operating at full capacity.

Wanli Tire is one of China's largest tyre manufacturers, supplying passenger vehicle, commercial vehicle and industrial tyres to both domestic and export markets. According to Selangor State Executive Councillor for Investment, Trade and Mobility, Ng Sze Han, the investment is expected to create approximately 1,350 local jobs. These positions will include not only production-line roles but also opportunities for engineers, quality specialists and managers.

"Development should never be concentrated in the Klang Valley alone. By bringing manufacturing operations to Hulu Selangor, we are ensuring that every corner of our state shares in its growth," Ng stated in a social media post.

Joint venture structure and investment details

According to reports citing a Bursa Malaysia filing, Wanli Tire will enter Malaysia's automotive tyre manufacturing sector through its Hong Kong-based investment arm, Trusmax Investment, which has entered into a joint venture agreement with Alam Baiduri, a wholly owned subsidiary of Berjaya Property.

Under the joint venture structure, Alam Baiduri will hold a 30% stake in the venture, while Trusmax Investment will own the remaining 70%. The joint venture company will undertake the research, development, design, manufacture and sale of automotive tyres, related spare parts and components, and the provision of after-sales services in Malaysia.

The total funding required for the project is estimated at approximately MYR 1.3 billion (US$ 318.2 million). Of this amount, MYR 813.4 million will be funded through equity contributions from Alam Baiduri and Trusmax Investment, while the remaining MYR 491.5 million will be financed through borrowings.

Growing Chinese investment in Malaysia's tyre industry

The Wanli Tire investment follows another investment commitment by a Chinese tyre manufacturer in Malaysia. In November last year, Chinese tyre manufacturer Prinx Chengshan Tire announced plans to invest MYR 2.6 billion over a 15-year period to establish a tyre manufacturing plant at Kedah Rubber City (KRC) in Kedah.

According to Kedah Industry and Investment Committee Chairman Dr Haim Hilman Abdullah, the 102.63-acre Prinx Chengshan facility is expected to export its first batch of products within a year of commencing operations. The project is also expected to create 1,056 jobs in engineering, research and development, and administration. The first phase of the Prinx Chengshan project is expected to commence production this year.

Additional investment planned for Hulu Selangor

Ng Sze Han also revealed that XTC New Energy, a Chinese manufacturer specialising in lithium-ion battery cathode materials, plans to invest an additional MYR 260 million in Hulu Selangor to produce cathode materials for lithium batteries. Combined, the Wanli Tire-Berjaya Property joint venture and the XTC New Energy project are expected to bring total new investments in Hulu Selangor to more than MYR 1.6 billion.