Kenda, Cheng Shin to build tyre plants in Taiwan - report

ERJ staff report (DS)

Taipei, Taiwan -- Both Kenda Rubber Ind. Co., Ltd. and Cheng Shin Rubber Ind. Co. Ltd. tyre plants in Taiwan during 2012, according to executives from the firms quioted on Taiwan's economic news service, CENS. Kenda will build a NT 10 billion (euro 240 million) passenger-car tyre plant. Cheng Shin will build a NT 12 billion (euro 289 million) truck tyre plant -- though this was in an agreement signed in 2009.

The report referred to a statement issued by The Changhua County Government.

The report said Kenda`s plant will produce mainly passenger car radial (PCR) tires with planned daily capacity of 25,000 units starting in 2014. Construction is due to start in late 2012. The plant will be located in an industrial zone in Changhua. The report noted that th emove is in response to US government tarrifs on Chinese-made tyres. The report quoted Yang Ying-ming, Kenda chairman,saying the investment project in Changhua is driven by strong demand from Europe and the U.S., where made-in-Taiwan tyres are very competitive due to quality and price advantages

CENS said Cheng Shin signed an agreement with the local authorities in 2009 committing to buld a truck tyre plant by the end of 2012, with an investment of NT$12 billion (US$300 million).

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Two Taiwan-based Tire Makers to Build Plants in Changhua in 2012 from CENS (Taiwan)