A Chinese tyre manufacturer is expected to invest US$200mil (RM894mil) to set up a factory in Malaysia.

Having signed a memorandum of understanding (MoU) with the Port Klang Free Trade Zone (PKFZ) on Wednesday, Qingdao FullRun Tyre Corp Ltd will be investing RM200mil in its initial phase to set up a factory there.

Incorporated under Golden Horse Rubber Sdn Bhd in Malaysia, the factory is expected to start production by May next year, said its president Liu Zijin.

Speaking at the signing of the MoU in Qingdao, Liu added that the company would only bring some 20 technical staff from China and was expected create 300 jobs for Malaysians.

At the signing was PKFZ assistant general manager Chan Wun Hoong and a delegation from MCA Youth.

Chan explained that FullRun Tyre has taken a 30-year lease with PKFZ.

“We have allocated six acres of land and 20 warehouses in PKFZ for their operations.

“We expect an increase in container port traffic by 6,000 TEUs (20-foot equivalent unit) per year.

“We hope this will help boost Port Klang’s international ranking,” said Chan.

He added that the factory was expected to export three million tyres to Southeast Asia every year.

FullRun Tyre has sold more than 50 million tyres since its incorporation, with most of its exports going to South America and Europe, its president said.

According to its website, the company’s exports hit more than US$100mil the past nine years.

MCA Youth, of which Chan is the publicity bureau chief, was on an official visit to Shandong.

The delegation was led by Youth chief Datuk Chong Sin Woon.

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