Cheng Shin to start up India and Indonesia tire plants in 2017

Chunghwa, Taiwan – Taiwan’s tire maker Cheng Shin, also known as Maxxis, is to start up its two plants in India and Indonesia in 2017, according to information released at the company’s investor conference on 7 April.

The India plant, located in Gujarat province, has 20,000 unit daily capacity for motorcycle tires and tubes in phase-one. “The plant has been completed…and is waiting for regulatory approval to go on stream,” said Cheng Shin’s assistance vice president Lo Yung Li at the conference.

The Deltamas, Indonesia plant with for passenger car tires and motorcycle tires will begin operation later this year, as “construction was delayed due to the country’s excessive rainfall last year,” Lo added. Installation at some of the facilities has started.

With nearly 30,000 employees globally, last year Cheng Shin reported €3.6 billion (NT$117 billion) revenue, flat from 2015. Motorcycle tires accounted for 14% of its total sales.

Its 10 opened plants in Asia has a total daily capacity of 520,000 tubes, 21,000 truck and bus tires, 180,000 passenger car tires, 406 bicycle tires, 229,000 motorcycle tires and 83,000 specialty tires.

ERJ is seeking clarification from the company about the Indonesia plant's capacity and which months the two plants are expected to start operation.