Chunghwa, Taiwan – Cheng Shin Rubber, also known as Maxxis, is to boost capital at its Maxxis Rubber India Private and Maxxis International Indonesia subsidiaries.
Maxxis Rubber India Private is to receive €13 million (1 billion Indian rupees) “for the procurement of feedstock and as a supplement for operational funding,” said a Cheng Shin statement on 24 Jan.
This, it noted, takes the India unit’s total investment to €82 million. It runs a plant in Gujarat province with 20,000 unit daily capacity for motorcycle tires in phase one that came on stream in mid-2017.
In the third quarter of last year, the Indian subsidiary saw a €2 million net loss, Cheng Shin also reported.
Maxxis International Indonesia is to receive $30 million investment, putting its total investment at $110 million.
The funds will be used “for the procurement of production equipment and as a supplement for operational funding,” said another Cheng Shin statement on the same day.
The subsidiary’s Deltamas, Indonesia plant for motorcycle tires and passenger car tires is still in the pipeline, the company has previously stated.