On 10 November, Cheng Shin Rubber Ind., Co., Ltd. announced that it is preparing to increase the capital of PT. Maxxis International Indonesia by US$30 million (about £25.53 million pounds; 29.01 million euros). Cheng Shin Rubber said that the capital increase meets the operation’s needs.
Recently, four Taiwanese tyre manufacturers, Cheng Shin, Nankang, Federal and Kenda, successively announced their September results. In September, Cheng Shin’s operating revenue was approximately NT$8.875 billion (about 244 million pounds, 280 million euros), an increase of 13.03 per cent over the same period last year.
On 7 September, an administrative penalty decision issued by Xiamen’s environmental protection department showed that Cheng Shin Tire (Xiamen) Co., Ltd was fined 23,857 yuan for an exhaust gas problem.
On the afternoon of 16 August Cheng Shin announced that production at its Chongqing factory would be suspended between 16 and 23 August to cooperate with the local government’s power policy. It is reported that Changshou District, Chongqing City, where the Cheng Shin factory is located, has experienced continuous high temperatures recently, and the power supply gap has continued to expand. The local government advocates for industrial enterprises to stop production to ensure electricity consumption for residents and ease the pressure on the power supply.
Vietnamese officials have interpreted the US Department of Commerce (DOC) anti-dumping investigation preliminary conclusions as “very positive” for Vietnam-produced car tyres. There was even hope that cooperative Vietnam-based tyre manufacturers Local newspapers read this mean Vietnamese tyre factories had been “cleared” by the investigation.
Former Maxxis International president Dr Wally Chen is leaving retirement to assume the chairmanship of the company. Dr Chen, who oversaw Maxxis’ rise to the ranks of the world’s top 10 tyre companies, will assume the chairmanship effective immediately following a vote by the company’s board of directors at a recent meeting. He replaces former Maxxis/Cheng Shin chairman Robert Lo (pictured).
The latest global tyre market share figures from tyre industry analyst Astutus Research show how long-established, leading players headquartered in Japan, Europe, and North America have seen their volume share diminish, while Chinese, ASEAN, and selected other markets’ tyre manufacturers’ share has risen. The analyst states that in aggregate, the ten leading PCLT tyre manufacturers based in Japan, Europe and North America (J-E-NA) have lost almost 6 percentage points of market share since the end of 2011 (OE and replacement segments combined, volumes in tyre units). In part this reflects a strategic choice of some to focus on the higher value premium segments of the market.
The leading Taiwanese tyre manufactures are reportedly planning to raise prices by between 8-12 per cent during 2017. According to local news reports, the price hike is a reaction to the jump in synthetic rubber and natural rubber prices.
Maxxis exhibited at Reifen from a prominent Hall 3 stand commensurate with the brand’s global positioning, and increasingly with its focus on Europe. Robert Lo, chairman of Maxxis manufacturer Cheng Shin Rubber Ind Co and Derek McMartin, managing director of Maxxis International UK explained to Tyres & Accessories that the stand included a portfolio containing the brand’s first “dedicated European products”. The new M36+, launched at Reifen, is perhaps the most prominent example of this.
A group of “leading rubber processors from China” are set to visit Thailand, Indonesia and Myanmar to survey sites to establish rubber plants in the next week or so. Thailand’s The Nation reports that about 10 rubber processors from Shandong province and representatives from the China Council for the Promotion of International Trade are scheduled to visit Indonesia, Myanmar (Burma) and Thailand between 19 and 25 November.
The group reportedly consists of around 50 representatives from both companies and government agencies. It will reach Thailand on 23 November where it will stay for two to three days with a view to considering “opportunities to invest in the South and Northeast, the country’s major rubber tree growing areas”.
Multiple Indian news sources are reporting that Taiwanese tyre maker Cheng Shin/Maxxis is planning to invest in an Indian factory. According to one Business Standard report, group president Dr. Wally Chen called upon Gujarat chief minister Anandiben Patel on 15 October.
Indonesia’s newly elected president promised support for Maxxis’ planned tyre factory in the country in a meeting with company officials in Jakarta at the end of September. Accompanied by members of the company’s Indonesia management team and a representative of Taipei’s Economic and Trade Office in Jakarta, Maxxis president Dr Wally Chen met with president-elect Joko Widodo 29 September.
According to a report in the Taipei Times, Cheng Shin Rubber has ambitions to overtake Yokohama rubber and become the world’s eighth largest tyre manufacturer.
The company hopes to achieve this by tapping into the fast growing Chinese car market and it has already signalled its intention to increase expenditure at its R&D operation in Kunshan, Jiangsu Province, China.
Cheng Shin Rubber Ind. Co. Ltd. (the parent company of Maxxis International) is investing over US$500 million in building new plants in Indonesia and Taiwan as well as expanding three existing plants in China.