TAIPEI, Taiwan (Feb. 13, 2003)—Taiwanese tire maker Federal Corp. reported an 18.9-percent increase in sales last year, to $122 million, with sales to overseas customers growing at a much higher rate.
Sales to markets outside Taiwan and China accounted for $69.2 million, Federal said, up 28.7 percent over 2001 to account for more than half of the firm's overall sales.
“The growth we achieved is very satisfying and is the direct result of implementing our strategies,” said President Jamie Ma in a prepared statement. “Much effort was put in by our research and development to develop more sizes for every tire model. We have also made significant investments in new equipment that allows us to keep pace with the growth, enhance quality and manufacture at a very effective cost.”
Mr. Ma credited demand for the firm's SS-595 ultra-high performance tire for much of the overseas sales growth. To accommodate this strong growth, Federal had transferred production of all 70- and 80-series tires to its Jiangxi, China, plant, where production capacity will double this year.
Federal will strengthen its line-up this year with the addition of the Couragia sport utility vehicle tire, due to be launched during the third quarter, according to Richard Huang, vice president, sales and marketing.