Changhua, Taiwan – Taiwan’s Kenda Rubber Industrial is partially transferring its mainland China tire production for US orders to other Asian areas amid tariff angst.
“Kenda has many tire manufacturing facilities in Asia, we can offer productions from different factories to cover demands from customers in different part of world," company chairman Jimmy Yang told ERJ.
The company will supply its tires from "wherever it fits to meet our goal of offering best service and quality products to customers,” the Kenda boss added.
According to the Chinese press, Kenda plans to move production of its commercial tires to Vietnam, bicycle tires to Taiwan, Vietnam and Indonesia, and motorcycle tires to Vietnam and Taiwan.
Mainland production of US. orders is worth €56 million (439 million yuan) annually, according to reporting in May by China Rubber, a biweekly affiliated to China Rubber Industry Association..
Kenda’s Mainland China production for US orders of passenger car tires and SUV tires will be moved to Kenda’s second Vietnam plant once its €42 million expansion project is finished.