Cheng Shin appoints new chairman, outlines Indonesia project at AGM
At Taiwanese tyre maker Cheng Shin Rubber’s Annual General Meeting, the son of company founder Lo Chieh (Luo Jie) was appointed the firm’s new chairman of the board. Lo Tsai-Jen (Lo Cairen), previously vice-chairman, replaces his 88-year old father as chairman effective 17 June. Lo Tsai-Jen became vice-chairman of the board in 2010; prior to that he served as general manager.
The president of the company’s Taiwan operation, Chen Jung-Hua (Chen Ronghua), also outlined the company’s plans to set up a facility in Indonesia. He confirmed that investment in the project would be around US$300 million. In May the Maxxis brand manufacturer announced it had paid up to $60 million for land at the Greenland International Industrial Center in Cikarang Pusat, some ten miles east of Jakarta. Work on the new plant is scheduled to start in early 2015, and production should commence before the end of the year.
In its coverage of Cheng Shin Rubber’s AGM, the Taipei Times wrote that Cheng Shin received requests from its automotive industry customers in Indonesia to build a local production facility there. The publication also quoted president Chen as saying the tyre maker is “planning to use the Indonesia market as a springboard to enter other Muslim markets.” No specific target countries were named.
During the AGM, Cheng Shin’s shareholders also approved a proposal to pay a NT$3.00 (£0.059) cash dividend after the company achieved earnings of NT$5.72 (£0.112) per share last year.