Cheng Shin Capacity to Grow 70% Through 3 New Plants
Production capacity at Cheng Shin Rubber is anticipated to grow a hefty 70 per cent through the construction of three new facilities. According to the China Economic News Service, the Taiwanese manufacturer of the Maxxis tyre brand has set aside NT$30 billion (₤640 million) to establish plants in China’s Sichuan and Fujian provinces and in Yunlin County, Taiwan. When the three plants are in production alongside the company’s existing Taiwan, Thailand and China factories, daily capacity is expected to rise from 100,000 to 170,000 pieces.
The proposed Xiamen, Fuijian Province plant will roll out Cheng Shin-brand passenger car tyres and will enter production in the third quarter of 2011, CENS reports. Daily capacity will be 26,000 tyres. Instead of utilising the Maxxis brand name in China as it previously had, the tyre maker will produce and distribute tyres there under its own ‘Cheng Shin’ name. According to H.M. Wu, vice president of the company’s finance department, Cheng Shin will use dual brands in China’s automotive market. Initially, the company will focus on the aftermarket by using the Cheng Shin brand, while tapping “the Shanghai and Kunshan segments” with its own Maxxis brand.
Cheng Shin saw consolidated sales reach close to NT$100 billion (₤2.1 billion) in 2010, up 20 per cent year-on-year, CENS added.