Kenda to erect further Chinese plant
Taiwan-based news service CENS reports that Kenda Rubber intends to invest approximately NT$10 billion (£212 million) to set up a plant in China’s Guangdong Province. At the company’s recent shareholders meeting, chairman Yang Ying Ming stated the tyre maker is acquiring 700 acres in Huizhou, and intends to relocate its existing Shenzhen factory there. The plant will produce motorcycle and bicycle tyres and daily output is expected to reach 83,000 pieces by 2016. Industry sources also say the new Huizhou factory will be much bigger than the Shenzhen plant as it will contain passenger car radial production lines intended to serve the European and US markets.
Kenda’s other new Chinese plant, which is being built in Tianjin, should start producing passenger car radials in the second quarter of 2013, CENS adds. Total investment in this facility is said to be around NT$5 billion (£106 million). According to CENS, the tyre maker is also looking to set up yet another passenger car radial factory, and is looking at the US or China’s Sichuang or Wuhan Provinces as potential sites. CENS says Kenda also aims to develop truck and bus radials, and may acquire a truck and bus radial manufacturer in China.