Skip to main content
Sister Publication Links
  • Rubber & Plastics News
Subscribe
  • My Account
  • LogIn
  • News
  • Technology Focus
    • Features
    • Technical Papers
    • Analysis: Rubber mixing plants of the future
      Analysis: US probes dumping by ESBR suppliers
      Opinion: Tire labels stuck in a rut
      Analysis: NR pricing takes one step forward, two steps back
    • White paper: Role of tire innerliners in improving 'in-use rolling resistance'
      White paper: Why tire air retention matters now more than ever
      Nippon Soda: Use of 1,2-polybutadiene in CSM rubber applications
      Elastomers for Sustainability Top 10
  • Events
    • ERJ Events
    • ERJ Livestreams & Webinars
    • Industry Events
    • Journey to Automation Awards 2020
      Sustainability: Top 10 E4S projects table
  • Maps & Reports
  • People
  • Directory
  • Digital Edition
  • Brainiac
MENU
Breadcrumb
  1. Home
  2. News
December 04, 2013 12:00 AM

Taiwan's Cheng Shin Rubber increases Indonesia investment

ERJ Staff
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print

    ERJ staff report (TP)

    Jakarta, Indonesia − Taiwan’s Cheng Shin Rubber Industry, the world’s ninth-largest tire producer, has quadrupled investment in Indonesia as it seeks a production base for supplying rapidly growing demand in Southeast Asia, reported Eva Fitriani for The Jakarta Globe.

    Cheng Shin increased its investment plan to $320m (€235.4m) from $80m (€58.8m) for a new plant, which is expected to start operations by 2015. Richard Lo, Cheng Shin financial director, said the company will use bank loans to finance three quarters of the investment, while the rest would come from its own cash.

    Lo said the new plant will make tires for cars and motorcycles for Southeast Asia as the company moves away from China investments in line with rising wages and costs in that country.

    Cheng Shin will face tight competition from established tire producers as well as new competitors. South Korean tire maker Hankook Tire, the seventh-largest such firm, opened a $350m (€257.5m) plant in Cikarang, West Java, in September.

    Hankook is seeking by 2018 to invest up to $1.1bn (€809.4m) in the plant, which will act as an export base for the North America and the Middle East, as well as a regional hub for emerging Asian markets.

    Two Indian tire manufacturers JK Tyre & Industries and Apollo Tyres have expressed interest in building plants in Indonesia that may cost at least $600m (€441.5m).

    Italian company Pirelli has set up a joint venture with the automotive component-maker subsidiary of Astra International to build a $120m (€88.3m) motorcycle tire factory in Indonesia. The plant is expected to be fully operational next year.

    Among local tire producers are Gajah Tunggal, the largest tire producer in Southeast Asia, and Multistrada Arah Sarana.

    Tire demand in the domestic market was buoyed by strong auto sales. Over 1m cars in the first 10 months of 2013, up 10 percent from a year earlier, according to the Association of Indonesian Automotive Manufacturers (Gaikindo).

    Meanwhile, motorcycle sales for January to October reached 6.51m units, up on the 5.96m units sold in the same period last year, according to data from the Indonesian Motorcycles Industry Association (AISI).

    The country’s tire exports, on the other hand, dropped 17 percent to $915.5m (€673.7m) due to slowing demand and cheaper tires on the global market, according to the Indonesian Tire Producers Association (APBI).


    This is an external link and should open in a new window. If the window does not appear, please check your pop-up blocking software. ERJ is not responsible for the content of external sites.

    Full story from The Jakarta Globe

    RECOMMENDED FOR YOU
    ExxonMobil rolls out new TPV challenger to EPDM weatherseals
    ExxonMobil rolls out new TPV challenger to EPDM weatherseals
    Amaplast predicts “negative result” for Italian machinery makers
    Amaplast predicts “negative result” for Italian machinery makers
    Rubber testing firms in UK-US link-up
    Rubber testing firms in UK-US link-up
    Free Newsletters

    Breaking news and in-depth coverage of essential topics delivered straight to your inbox.

    Subscribe today

    Get the latest news impacting the European rubber industry, from breaking news to razor-sharp analysis, in print and online.

    Subscribe now
    Connect with Us
    • LinkedIn
    • Twitter
    • Youtube

    Logo
    Contact Us

    @ 2019 European Rubber Journal. All rights reserved.
    Contact Us European Rubber Journal, Crain Communication LTD, Ground Floor 11 Ironmonger Lane, London EC2V 8EY, UK

    Customer Service:
    1-313-446-0450

    Resources
    • About us
    • Contact Us
    • Staff
    • Advertise with Us
    • Media Kit
    • Careers
    • Ad Choices Ad Choices
    • Sitemap
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Copyright © 1996-2021. Crain Communications, Inc. All Rights Reserved.
    • News
    • Technology Focus
      • Features
      • Technical Papers
    • Events
      • ERJ Events
      • ERJ Livestreams & Webinars
      • Industry Events
    • Maps & Reports
    • People
    • Directory
    • Digital Edition
    • Brainiac