Wuxi firm to build new plant in RCEP member country

Jiangsu General Science Technology Co, a tile maker based in Wuxi, will invest 1.9 billion yuan ($298.48 million) to build a new production plant in Cambodia, as the project surpassed the record of overseas investment of the Jiangsu provincial department of commerce on Jan 11.

The company now has two production bases, one in Wuxi and one in Thailand, and its products are exported to dozens of countries and regions such as the United States, Europe, and Southeast Asia.

According to workers from the firm, the construction of its new branch in the Sihanoukville Special Economic Zone in Cambodia will take about 18 months. The annual output of the production line is expected to reach 5 million semi-steel radial tires and 900,000 all-steel radial tires. The company will provide 1,600 jobs for locals and increase the average annual operating income by 2.2 billion yuan after being put into full operation.

Officials from the local commerce bureau note that the project is Wuxi's second largest investment project in Cambodia after the SSEZ, which is also the city's largest cross-border RMB investment project.

In addition, it is the first foreign investment project in Wuxi to be carried out in a member country of the Regional Comprehensive Economic Partnership after the largest free trade agreement in the world came into effect on Jan 1.

The RCEP region is a global destination for significant foreign direct investment. In recent years, economic and trade exchanges between Wuxi and RCEP member countries have become increasingly close.

By the end of 2021, the city's enterprises had carried out 380 investment projects in RCEP member countries, among which the Chinese side's agreed investment amounted to $3.2 billion, accounting for 21 percent of the city's total overseas investment.