CHUNGLI, Taiwan (May 31)—Federal Corp. is investing $30 million in its Federal Tire (Jiangxi) subsidiary in China to double annual radial car and light truck tire capacity to 5 million units by year-end.
The investment will go toward new rubber mixing, tire building and uniformity testing equipment. The project will expand the range of sizes Jiangxi, Nanchang-based JFT can produce, boosting its product lines, Federal said.
JFT makes Federal's entire range of Federal and Hero brand tires, covering passenger (including high performance), light truck and sport-utility vehicle.
Federal, the world's 49th ranked tire maker with 2003 sales of $143.5 million, also is raising capacity at its Taiyuan, Taiwan, factory, and by 2006 Federal expects the combined capacity of its two facilities will exceed 8 million units.
The company has operated JFT since 1997, when it took over full ownership of the former Hero Tire Factory. Up to now, the plant has made primarily 80-series radial passenger tires and bias-ply truck, bus and agricultural tires, primarily in the Hero and Maxon brands.