Federal to invest $30 million in Chinese subsidiary plant
Chungli, Taiwan--Federal Corp. is investing $30 million in its Federal Tire (Jiangxi) subsidiary in China to double annual radial car and light truck tyre capacity to 5 million units by year-end.
The investment will go toward new rubber mixing, tyre building and uniformity testing equipment. The project will expand the range of sizes Jiangxi, Nanchang-based JFT can produce, boosting its product lines, Federal said.
JFT makes Federal's entire range of Federal and Hero brand tyres, covering passenger (including high performance), light truck and sport-utility vehicle.
Federal, the world's 49th ranked tyre maker with 2003 sales of $143.5 million, also is raising capacity at its Taiyuan, Taiwan, factory, and by 2006 Federal expects the combined capacity of its two facilities will exceed 8 million units.
The company has operated JFT since 1997, when it took over full ownership of the former Hero Tire Factory. Up to now, the plant has made primarily 80-series radial passenger tyres and cross-ply truck, bus and agricultural tyres, primarily in the Hero and Maxon brands.
From Rubber & Plastics News
Website of Federal Tire
This article is only available to subscribers - subscribe today
Subscribe for unlimited access. A subscription to European Rubber Journal includes:
- Every issue of European Rubber Journal (6 issues) including Special Reports & Maps.
- Unlimited access to ERJ articles online
- Daily email newsletter – the latest news direct to your inbox
- Access to the ERJ online archive