While Maxxis posted a 12.7-percent year-on-year decline in sales 2015, to $3,847.0 million, the Yuanlin, Taiwan-based company expects to advance its position this year, helped by new capacity coming on stream.
"As you know, the no 8 [ranked tire maker] is Yokohama Rubber Co. and we are working hard to grow in the future,” said Lee, noting that Maxxis will soon add two new tire plants to bolster its existing global production set-up comprising 16 facilities.
Maxxis currently operates: six tire factories in Taiwan; eight in China (five in Xiamen and one in Chongqing, Shanghai and Tianjin), one in Rayong, Thailand, one in Dong Nai, Vietnam. Capacity totals over 1 million tires a day
The new plant in Indonesia, costed at around $320 million, will produce a passenger car and motorcycle tires. It is located in Suryacipta City of Industry in Karawang, east of Jakarta.
In the Indian state of Gujarat, Maxxis is expected to spend around $400 million in a facility that will initially manufacture motorcycle tires and tubes. The plant, near Ahmedabad, has a projected capacity of around 20,000 units per day and will eventually employ about 2,000 people.
"To make sure that supply will be no problem in the future we are expanding by building new factories in Indonesia and India," said the Maxxis executive.
Trial production at the two factories will begin in late 2016, with commercial operations scheduled to start early next year, Lee told ERJ.
Maxxis, which today employs over 31,000 people, will reach is 50th anniversary next year: having started as a manufacturer of bicycle tires in Taiwan in 1967.