Federal to build second plant in Taiwan

ERJ staff report (TB)

Essen, Germany – Taiwan tire maker Federal Corp. has secured land in Taoyuan, Taiwan, for a second factory, but construction is not expected to begin until late this year, Federal chairman Jamie Ma told Tire Business this week at the Reifen show in Essen.

The plant will have a nameplate capacity of six million passenger and light truck radials a year, Ma said, including UHP sizes. Provided ground-breaking takes place before year-end, the plant should be producing by late 2016.

Ma declined to provide the investment budget for the factory or other details at this time. The site secured is in an industrial park near Taiwan's Taoyuan Airport, which is also near to Federal's existing Taiwan factory, which began production in 1960.

Federal also operates a factory in China, in Nanchang, Jiangxi.

Federal was the No. 57 tire maker worldwide in 2012, based on sales of $309m (€227m). Ma said the company's revenue last year was stable compared with 2012, reflecting the slow economic growth in most major markets.

At Reifen, Federal is showing its expanded line of competition and rally tires, along with a prototype of a sealant tire it's preparing for market.

Federal is planning to mark its 60th year in business with a celebration at this year's Specialty Equipment Market Association Show in Las Vegas. Federal was founded in 1954 by Chi San Ma as a rubber products company. Federal branched into tires in 1960 through a technical cooperation with Bridgestone Corp. that lasted until 1979.

Federal then allied itself with Sumitomo Rubber Industries Ltd. from 1981-2000 and has been completely independent since.