Cheng Shin Tyre gets orders from Maruti, Tata and Mahindra: Investing $300 million on new plant
In a bid to expand their reach in one of the fastest growing auto market today, Cheng Shin Rubber, the ninth largest tire manufacturer in the world today, has signed up with India’s leading car makers like Maruti Suzuki, Tata Motors and Mahindra & Mahindra.
Apart from this, the Taiwan based Cheng Shin Rubber has confirmed an investment of US$300 million (Rs 1,800 crores) in a new plant in Indonesia. This new plant will be constructed in Suryacipta Industrial Park in Indonesia.
Construction on new Indonesian plant will commence from early next year, while production operations should get underway by end of 2015. This new plant has received approvals from company shareholders and was passed in the annual general meeting, focusing on the fact that Indonesia’s motorcycle and car market is increasing by leaps and bounds. Cheng Shin Tyre’s new plant will produce tyres for cars and motorcycles and is part of the company strategy to shun Chinese investments due to rising wages and higher costs in the country.
Once this plant is operational, Cheng Shin production bases in Asia will be expanded to include plants in Taiwan, China, Vietnam and Thailand where massive expansion plans are underway. These future plans will receive an investment of US$500 to $600 million.
The latest expansion has brought greater recognition to Cheng Shin. The company has received orders from Indian auto manufacturers such as Tata Motors, Maruti Suzuki and Mahindra & Mahindra besides from the Nissan plant in Mexico.
In Indonesia, Cheng Shin Rubber will have competition from Hankook Tyre, a leading South Korean tyre maker with a new $350 million plant in Cikarang, West Java. Indian tyre makers JK Tyre and Apollo Tyres are also showing interest in Indonesian markets.
via Taipei Times