YUANLIN, Taiwan (Oct. 10, 2002)—Cheng Shin Rubber Industry Co. Ltd. plans to build a radial tire plant near Bangkok, Thailand, with production of passenger and light truck radials to begin in late 2004.
Cheng Shin, which does business in North America as Maxxis International, will build the plant on a 72-acre plot it has secured in the Eastern Seaboard Industrial Estate in Rayong City, Thailand. The plant will employ 1,700 workers and make 10,000 tires a day at start-up, the company said.
The investment was not disclosed.
Cheng Shin said it chose Thailand for the new plant because it is one of the world´s major suppliers of natural
rubber, as well as Asia´s major production base for automobiles. More than 10 automobile manufacturers, including Mercedes-Benz A.G., BMW A.G., Toyota Motor Corp., General Motors Corp. and Ford Motor Co. are located in the area.
The Rayong City industrial estate is a 3,000-acre industrial site housing more than 100 companies, catering mainly to the automobile industry.
The new facility will be Cheng Shin's fourth tire plant. The company operates plants in Yuanlin, Taiwan, and Xiamen and Kun Shan, China, the latter a joint venture with Toyo Tire & Rubber Co. Ltd.
"The addition of the new plant will quickly enable us to continue our strong growth in radial automotive tires and will support our facilities in Taiwan and China. This move is concurrent with the expansion of our mainland China plant," said Greg Rauth, national sales manager, automotive division, Maxxis International.
In addition, Maxxis recently has relocated its West Coast distribution to a larger facility in Rancho
Cucamonga, Calif., and expanded its U.S. headquarters in Suwanee, Ga.
With 2001 sales of $487.4 million, Cheng Shin is considered the 14th largest tire maker in the world, according to Tire Business' annual ranking of tire companies.