Luo Yongli, deputy general manager of the company, recently told a briefing that he is optimistic about the operation of Cheng Shin in 2023. In the past, Cheng Shin has reportedly significantly reduced capital expenditures to combat adversity in the operating environment. But with the overall situation expected to improve, the tyre maker will start expanding production capacity, including launching a 40 million tyre capacity expansion plan at factories in mainland China.
On 18 November, Federal Corporation stated that Chiang Ching Hsing, the company’s chairman and general manager, resigned. Chen Heng Kuan, who is also chairman and president of Nankang, held his position. According to analysts, both Chiang Ching Hsing and Chen Heng Kuan are representatives of Nankang Rubber on the Federal Corporation’s board of directors, and Chiang Ching Hsing’s departure will not bring about a massive change in Federal Corporation.
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 3 October, Cambrian Tyres announced that it has been appointed as the exclusive importer of Goodyear Bicycle Tires for the UK and Ireland. Already a top-three global tyre company, Goodyear has been establishing itself as a leading brand within the global bicycle tyre segment since 2018 via a licensing agreement with Rubber Kinetics. Rubber Kinetics produce all Goodyear bicycle tyres at their “bicycle tyre specific research, development, and production centre in Taiwan”.
Recently, Taiwanese tyre manufacturer Federal disclosed to the public its recent operations, including land development plans associated with one of its factories. Federal has two factories in Taiwan, located in Chungli and Guanyin, with a total of 535 employees. The tyre maker said the Guanyin plant has an annual capacity of 3 million tyres; the Chungli plant has been suspended due to the implementation of anti-dumping duties by the United States.
On 28 June 2022, Huntington Business Credit announced it closed $35 million of new credit facilities with American Kenda Rubber Industrial Co. Ltd. (Kenda USA). According to Huntington Business Credit, the funds were used to “refinance existing indebtedness and provide ongoing working capital growth financing.
In the first week of August, Taiwanese tyre manufacturers Nankang and Federal successively released operating data for July 2022.
Nankang’s operating revenue in July was NT$660 million (about £18.22 million; 21.58 million euros), down 10.8 per cent from NT$740 million (about £20.42 million; 24.2 million euros) in the same period last year. From January to July, the tyre maker’s operating revenue was about NT$4.72 billion (about £130 million; 115 million euros), down 3.08 per cent year-on-year.
According to Federal Corporation’s 2021 annual report, which was published in mid-May 2022, on 15 October 2021, “major shareholder Nankang Rubber Tire Corp. Ltd. Nankang Rubber Tire Corp., Ltd…called an extraordinary shareholders’ meeting to obtain the management right[s].” Federal and Nankang representatives have been contacted by Tyres & Accessories for comment.
On the evening of 13 June 2022, a fire broke out at the tyre factory of Federal Corporation (formerly known as Taifeng Tire) in Zhongli City, Taoyuan, Taiwan. Black smoke from the fire was visible several kilometres away, according to local news reports.
Nankang Rubber Tire Corp. Ltd. has announced that it has completed the re-election of directors and appointed Lin Junying as its general manager. According to Taiwan media reports, Lin Junying is the eldest daughter of Lin Xuepu, the deceased honorary chairman of Nankang and also an amateur racing driver.
Kenda has won the “Best Practice Award” for manufacturing quality during the 26th National Quality Awards in Taiwan. The award recognizes businesses that demonstrate high quality management and is the only award for business quality issued by the Executive Council in Taiwan. Kenda was one of just 15 to win the award.
The United States International Trade Commission (USITC) has determined that passenger vehicle and light truck (PLT) tyres imported from Korea, Taiwan, and Thailand are being sold in the USA at prices that materially injure the local tyre industry. In addition, the U.S. Department of Commerce has determined that Vietnam’s government is subsidising PLT tyres that are then sold in the USA at “less than fair value.”
Anti-dumping duties as high as 98% may be applied to passenger vehicle and light truck tyres entering the USA from South Korea, Taiwan, Thailand and Vietnam. The U.S. Department of Commerce announced on 30 December that it will instruct U.S. Customs and Border Protection to collect cash deposits from importers of these products.
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).
Taiwan-based China Synthetic Rubber is considering investing 10 billion rupees (126 million euros; £110.9 million; US$146.8 million) in a carbon black manufacturing facility in Gujarat, India. According to the Financial Express, the company has identified potential locations in the chemicals and petrochemicals investment region for the proposed project.