TAIPEI, Taiwan (June 20, 2014) — Cheng Shin Rubber Ind. Co. Ltd./Maxxis International has approved investments of $500 million to $600 million for the next few years to build plants in Indonesia and Taiwan and expand capacities at three plants in China.
- NOTE: This version updates the story, which overstated the amount of investment due to a misunderstanding of the information provided that led to a double counting of some of the totals.
Cheng Shin Rubber disclosed the investment strategy its recent annual meeting, where it also announced the retirement of Chairman Luo Chieh, the 89-year-old founder of Cheng Shin, and the appointment of his son Luo Tsai Jen (Robert Luo) as his successor.
In Indonesia, Cheng Shin confirmed earlier plans to invest $320 million for a car and motorcycle tire plant to be built on a 35-hectare (81 acre) site in in the Greenland International Industrial Centre, an industrial area under development near Cikarang, West Java.
Capacity and employment details are still pending, the firm said. Construction on the plant will start next year, with initial production to follow in 2016, Chen Shin said.
The plant, to be called Maxxis International Indonesia, will be the company’s first in Indonesia and 11th overall.
In Taiwan, Cheng Shin is budgeting $100 million to build a plant for motorcycle tires and automotive spare tires. It will be located in Yunlin county; ground-breaking is set for August.
In China, Cheng Shin plans to spend $80 million to $180 million to expand capacities at plants in Zhangzho (motorcycle and bicycle tires), Xiamen Jimei (passenger radials) and Chongqing (passenger radials).
No capacity or employment details were released. Work on the expansions will start toward year-end, Cheng Shin said.
Cheng Shin/Maxxis is considered the ninth largest tire maker worldwide, with sales approaching $5 billion.