Skip to main content
EVENT TRACKER
Keep track of rescheduled, canceled industry events with our COVID-affected event tracker - Powered by Snap Finance
Close
Sister Publication Links
  • Rubber & Plastics News
  • European Rubber Journal
tb-logo
Subscribe
  • Login
  • Register
  • Subscribe
  • News
    • OPINION
    • CORONAVIRUS
    • AUTO INDUSTRY
    • BUSINESS/FINANCIAL
    • COMMERCIAL TIRE
    • FACTORY FIXES
    • GOVERNMENT & LAW
    • INTERNATIONAL
    • MOTOR SPORTS
    • NEW PRODUCTS
    • RETAIL TIRES
    • SERVICE ZONE
    • SEMA/AAPEX
    • SMALL BUSINESS
    • TIRE MAKERS
    • SPONSORED CONTENT
    • TBC Corp. to make donation to company charity to reward vaccinated employees
      Titan to offer free COVID-19 vaccines at Iowa facility
      Bridgestone hosts vaccination events for plant employees
      Cioffi: Will remote working be the new normal?
    • SEMA closes deal for SEMA Garage property in Michigan
      Conti adding dynamic driving simulator at German R&D center
      Yokohama gains OE fitments on BMW, Mercedes-AMG sport utilities
      SEMA picks site in Michigan for 2nd SEMA Garage
    • Pirelli adds 3rd North American bicycle tire distributor
      Goodyear goes retro for 'Throwback' NASCAR race at Darlington Raceway
      Keter to expand NeoTerra SKUs through mid-2022
      Federal approved as 5th Formula Drift tire supplier
    • Fisher: Expect robust recovery in last half of year
      Vipal targets North America for machinery sales growth
      Commercial tire, retreading sectors on solid footing
      JK Tyre adds radial truck tires to U.S. portfolio
    • New York chipping in $3M+ toward Sumitomo factory expansion
      SBA extends and expands COVID-19 loan program
      Stimulus spending should help tire industry
      U.S. agro-science firm gets $1M grant to research sunflower latex
    • Bridgestone to upgrade Japanese OTR tire plant
      Point S Canada signs point-of-sale agreement with Flexiti Financial
      Fountain Tire promotes pair to new executive roles
      ETRMA adding Nexen and Czech and Slovak trade groups to membership
    • Goodyear goes retro for 'Throwback' NASCAR race at Darlington Raceway
      Federal approved as 5th Formula Drift tire supplier
      Maxxis offers discount to ChampCar competitors
      Michelin strikes supply deals with new Canadian racing series
    • Yokohama OHT adds severe-duty solid tire to Galaxy brand
      Bosch adds 22 aftermarket parts in Q1
      Snap-On introduces TreadReader handheld tire scanner
      Vogue Tyre introduces ‘biggest, boldest' red stripe tire
    • Point S Canada signs point-of-sale agreement with Flexiti Financial
      WTC webinar to address tire/wheel-balancing process errors
      Commercial tire, retreading sectors on solid footing
      TBC Corp. to make donation to company charity to reward vaccinated employees
    • Fisher: Expect robust recovery in last half of year
      Bosch adds 22 aftermarket parts in Q1
      Marinucci: Detailed instructions will save time
      Bartec introduces TPMS software updates
    • WTC webinar to address tire/wheel-balancing process errors
      SEMA closes deal for SEMA Garage property in Michigan
      SEMA picks site in Michigan for 2nd SEMA Garage
      SEMA touts expanded Las Vegas Convention Center ahead of 2021 expo
    • SBA extends and expands COVID-19 loan program
      Stimulus spending should help tire industry
      Giti disputes report blasting tire maker for accepting PPP funds
      SEMA survey shows resilient auto aftermarket in 2020
    • Coopers are ready to rock: Cooper Tire, Alice Cooper seek best garage band
      Last Mile: Delivery surge raises demand for medium truck tires
      Nexen touting manufacturing quality milestone
      Apollo isn't planning U.S. plant — yet
    • Sponsored By Yokohama Tire Company
      7 questions to ask consumers when they need tires for a crossover SUV
      Sponsored By Yokohama Tire Company
      Stocking Tires for Crossover SUVs
      Sponsored By AppointmentPlus
      Three Important Lessons Learned for the Tire Business During a Pandemic
      Sponsored By Yokohama Tire Company
      7 questions to ask consumers when they need tires for a crossover SUV
  • SHOP FLOOR
    • BALANCING
    • DEMOUNTING
    • SAFETY
    • TIRE REPAIR
    • TPMS
    • TRAINING
    • VEHICLE LIFTING
    • WHEEL TORQUE
    • Video: Balancing Tire
      Choosing the right balancing equipment
      Safety tips for wheel balancing
      An introduction to wheel balancing
    • Video: Demounting
      Demounting Equipment
      Making rims ready for a tight seal
      Tire changer types, tips and trends
    • Video: Safety
      Making friends with OSHA
      Ergonomics on the shop floor
      Customers
    • Video: Tire Repair
      Tire repair: Shining a light on visual inspections
      Staying safe when repairing a tire
      Essential tools, materials and equipment for tire repair
    • Video: TPMS Service
      Decoding sensor data for TPMS diagnosis
      Replacement TPMS sensor overview
      The life-saving work of TPMS
    • Video: Training
      Advantages of apprentice program partnerships
      Options and resources for CE tech training
      Internship ideas to attract tech talent
    • Video:Vehicle Lifting
      All types of lifts for all types of work
      Tips and recommendations for lifting safety
      The gravity of proper lift points
    • Video: Wheel Torque
      Using torque sticks to speed service times
      The danger of too much, too little torque
      The importance of torque specifications
  • Multimedia
    • VIDEOS
    • PHOTOS
    • PODCASTS
  • Events
    • ASK THE EXPERT
    • LIVESTREAMS
    • WEBINARS
    • SEMA LIVESTREAMS
  • Data
    • DATA STORE
  • Resources
    • DIRECTORY
    • CLASSIFIEDS
  • ADVERTISE
  • DIGITAL EDITION
  • Awards
    • Tire Dealer Humanitarian Award
MENU
Breadcrumb
  1. Home
  2. News
May 16, 2002 02:00 AM

Maxxis dedicates new HQ expansion

  • Tweet
  • Share
  • Share
  • Email
  • More
    Print

    SUWANEE, Ga. (May 16, 2002)—A tree planting. Speeches by company and community officials. Tours. An outdoor white-tablecloth reception complete with American and Asian hors d'oeuvres and mellow music by a harpist.

    Maxxis International-USA rolled out the red carpet in style at a May 1 dedication marking the expansion of its headquarters and warehouse in Suwanee.

    While the event centered on the recently completed $5 million, 106,000 sq.-ft. Suwanee addition, it also served as a celebration of how far Maxxis has come since the wholly owned subsidiary of Taiwan's Cheng Shin Rubber Industry Co. Ltd. was established in the U.S. on Jan. 1, 1985.

    Back then the company had just two employees—James Tzen and Grace Ju—who remain with Maxxis today serving as president and treasurer, respectively.

    “We had a difficult time in the beginning,” Mr. Tzen told employees at a luncheon prior to the dedication. “Grace and I worked hard and were able to develop the business.”

    Reminiscing about those early years, he recalled the day the first load of tires arrived from Taiwan. “We weren't ready,” he joked. “I think they shipped the container before we even had ordered it.”

    Now, 17 years later, it's a “very special day,” he continued. “I feel very good about our current investment because we are now in a position to grow our business in the next five to 10 years.”

    From its humble beginning, Maxxis' sales of passenger, light truck, ATV, bicycle and industrial tires have grown to more than $100 million annually in the U.S. The company, which goes by the name of Cheng Shin Rubber in Asia, has 70 employees in the States and operates warehouses in Coppell, Texas, Brampton, Canada, and Ontario, Calif. It also maintains a research and development facility in Norcross, Ga.

    Mr. Tzen attributed the company's growth to its commitment to developing quality products and to its good brand image.

    Maxxis has “a sterling reputation,” said Louisville, Ky., tire dealer Steve Disney, who also is president of the Tire Association of North America. “They've been very persistent about achieving their goals.” Mr. Disney also serves as president of the private brand firm, Sure Tire Co., and was one of about 50 guests invited to the dedication ceremony.

    “I remember dealing with them a decade ago, and here we are a decade later and they're making their numbers.”

    And the company's growth continues.

    Already it's expanding warehouse capacity in California, where it plans to move into a leased 113,000 sq.-ft. facility in Rancho Cucamonga in October. The new distribution center will be nearly double the size of the Ontario warehouse, which will be closed. The new warehouse also will have the capability of stacking tires five racks high vs. the Ontario site's four high—which will provide even more storage capacity, said Robert Daughter, the company's California distribution manager.

    While Maxxis traditionally has focused its sales efforts on the southern half of the U.S., the company plans to look northward in the future, Mr. Tzen said, and will add independent tire dealer outlets as production capacity and supply allow.

    As for 2002, Maxxis wants to boost U.S. revenues to $120 million, which includes direct shipments from the company's factories to some customers here, said Wally Chen, Cheng Shin Rubber president whose vision and leadership led the company to ex-pand globally years ago.

    Founded 35 years ago with a focus on bicycle tires, Cheng Shin/ Maxxis has evolved into a global manufacturer, with 7,000 employees working on three continents. The company—the world's largest manufacturer of bike tires—posted sales of $501.6 million in 2001 and ranked in 2000 as the 13th largest tire maker in the world.

    Interviewed during the dedication ceremony, Mr. Chen said Cheng Shin's goal is to crack the top 10 ranking of the largest tire makers and to have the Maxxis name listed among the top 100 brands globally. To do that, he said, “we have to increase sales and make Maxxis a household brand worldwide.”

    Maxxis/Cheng Shin, he ex-plained, is dedicated to producing quality products and developing good customer relationships. “We want our customers to make a profit selling our tires,” he said. “But it's got to be win-win.”

    To handle the expected sales growth, Cheng Shin is expanding production at its tire plants in Taiwan and China.

    Production capacity at its Shanghai, China, factory, a joint venture with Toyo Tire & Rubber Co. Ltd., stands at about 12,000 passenger and light truck tires a day, Mr. Chen said. That will nearly double over the next year, he explained, as a result of two expansions that will add production capacity for 5,000 more tires a day by July or August and another 5,000 by the middle of next year.

    Many of these tires will go to local markets, although some will be exported to the U.S., Mr. Tzen said.

    The company also plans to expand its plant in Yuanlin, Taiwan, adding new tire building equipment that will boost capacity for passenger and light truck tires to 15,000 units a day from about 12,000 a day. The project should be completed by this fall.

    Along with additional production capacity, Maxxis/Cheng Shin will continue to market and promote its products aggressively, including continuing its sponsorships of ATV, bicycle and motorcycle racing events primarily in Europe, Australia and the U.S. It also will continue its sponsorship of off-shore F1 boat racing and the Atlanta Braves baseball team. In addition, it has become a sponsor of AOL Arena, a soccer venue in Hamburg, Germany.

    Although not yet a household name in the passenger and LT segment, Maxxis is well known for its bicycle, ATV and motorcycle tires. Recently, readers of Transworld BMX, BMX Plus and Mountain Bike Action magazines voted Maxxis the No. 1 tire, Mr. Chen said.

    In its March issue, ATV Action magazine rated the Maxxis Mudzilla ATV tire the best mud tire in a test involving five other brands.

    In addition, the company has been racking up various honors.

    The global edition of Forbes magazine named Maxxis one of the 200 best small companies in the world in its Oct. 29, 2001, issue.

    In December, General Motors Corp. in Shanghai honored the company for its high quality products and service.

    And in March 2001, Maxxis received Ford Motor Co.'s Silver World Excellence Award for its exceptional accomplishments during the year.

    Maxxis/Cheng Shin supplies tires to Ford in Taiwan, China and North America, where it provides spare tires for several Ford vehicles made in Canada.

    Letter
    to the
    Editor

    Do you have an opinion about this story? Do you have some thoughts you'd like to share with our readers? Tire Business would love to hear from you. Email your letter to Editor Don Detore at [email protected].

    SIGN UP FOR NEWSLETTERS
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    Newsletter Center

    Staying current is easy with Tire Business delivered straight to your inbox.

    SUBSCRIBE TODAY

    Subscribe to Tire Business

    SUBSCRIBE
    Connect with Us
    • Facebook
    • LinkedIn
    • Twitter
    • RSS

    Our Mission

    Tire Business is an award-winning publication dedicated to providing the latest news, data and insights into the tire and automotive service industries.

    tb-logo
    Reader Services
    • Contact Us
    • About Us
    • Site Map
    • Industry Sites
    • Order Reprints
    • Customer Service: 877-320-1716
    Partner Sites
    • Rubber & Plastics News
    • European Rubber Journal
    • Automotive News
    • Plastics News
    • Plastics News China
    • Urethanes Technology
    RESOURCES
    • Advertise
    • Privacy Policy
    • Privacy Request
    • Terms of Service
    • Media Guide
    • Editorial Calendar
    • Classified Rates
    • Digital Edition
    • Careers
    • Ad Choices Ad Choices
    Copyright © 1996-2021. Crain Communications, Inc. All Rights Reserved.
    • News
      • OPINION
      • CORONAVIRUS
      • AUTO INDUSTRY
      • BUSINESS/FINANCIAL
      • COMMERCIAL TIRE
      • FACTORY FIXES
      • GOVERNMENT & LAW
      • INTERNATIONAL
      • MOTOR SPORTS
      • NEW PRODUCTS
      • RETAIL TIRES
      • SERVICE ZONE
      • SEMA/AAPEX
      • SMALL BUSINESS
      • TIRE MAKERS
      • SPONSORED CONTENT
    • SHOP FLOOR
      • BALANCING
      • DEMOUNTING
      • SAFETY
      • TIRE REPAIR
      • TPMS
      • TRAINING
      • VEHICLE LIFTING
      • WHEEL TORQUE
    • Multimedia
      • VIDEOS
      • PHOTOS
      • PODCASTS
    • Events
      • ASK THE EXPERT
      • LIVESTREAMS
      • WEBINARS
      • SEMA LIVESTREAMS
    • Data
      • DATA STORE
    • Resources
      • DIRECTORY
      • CLASSIFIEDS
    • ADVERTISE
    • DIGITAL EDITION
    • Awards
      • Tire Dealer Humanitarian Award