Kenda’s second Yun-Lin plant enters service
Kenda’s new passenger car tyre factory, built alongside its existing Yun-Lin plant in Taiwan, has now entered operation. The new plant is said to have a daily capacity of 5,000 tyres per day and according to the Taiwan Economic News it will contribute towards a gradual rise in Kenda’s daily output in Taiwan in China; it says output will begin increasing in the third quarter of 2011 and should reach 30,000 tyres per day by the end of the year – an increase of 50 per cent over current capacity. Most output from the new factory will be shipped to Europe and the US and is expected to contribute an additional NT$1.8 billion (£37 million) to annual revenues.
The opening of the second Yun-Lin plant forms just one part of Kenda’s plan to expand passenger car tyre production. Taiwan Economic News says further capacity and new production lines are being added to the company’s existing Shanghai and Tianjin plants and these will reach an aggregate annual output of 15.04 million passenger car tyres in 2013; 90 per cent of this output will be sold on the domestic replacement market, with the remainder supplied to local OEM customers. The news service also reports the tyre maker is now searching for a suitable site in southern China for a new greenfield plant.