CHUNGHWA, Taiwan — Cheng Shin Rubber Industrial Co. Ltd.'s new plants in India and Indonesia will start production this year, the Taiwanese tire maker disclosed at its recent investor conference.
The company, which goes to market under the Maxxis International name, announced its intention to build the Indonesian plant in 2013 and the Indian plant in 2015. Together, the two plants represent $720 million in investment, according to the earlier announcements.
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," Lo Yung Li, Cheng Shin's assistance vice president, said at the conference.
Cheng Shin budgeted $400 million for the plant.
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.
The company budgeted $320 million in 2013 for the factory.
With nearly 30,000 employees globally, last year Cheng Shin reported $3.5 billion in sales revenue last year, essentially flat compared with 2015, when it was ranked ninth worldwide on Tire Business' Global Tire Rankings.
Motorcycle tires accounted for 14 percent of total sales.
The new plants expand Cheng Shin's manufacturing footprint to 16 factories—six in Taiwan; eight in China; one each in India, Indonesia, Thailand and Vietnam. Capacity totals over 1 million tires a day.