TAIPEI, Taiwan—Cheng Shin Rubber Ind. Co. Ltd. disclosed an investment strategy totaling between $500 million and $600 million to build plants in Indonesia and Taiwan and expand capacities at three plants in China over the next few years.
Chairman Luo Chieh also announced his retirement from Cheng Shin Rubber, which does business as Maxxis International. The 89-year-old founder of Cheng Shin appointed his son, Luo Tsai Jen (Robert Luo), as his successor at its annual meeting June 20.
Cheng Shin confirmed earlier plans to invest $320 million for a car and motorcycle tire plant to be built on a 70-acre site at the Greenland International Industrial Centre of the Suryacipta City of Industry, which is located in the Karawang area of Indonesia.
Capacity and employment details are still pending, the firm said. Construction on the plant will start next year, with initial production to follow in 2016, Chen Shin said.
The plant, to be called Maxxis International Indonesia, will be the company's first in Indonesia and 11th overall.
Cheng Shin is budgeting $100 million to build a plant for motorcycle tires and automotive spare tires in Taiwan. It will be located in Yunlin County and the ground-breaking is set for August.
In China, Cheng Shin plans to spend $500 million to $600 million to expand capacities at plants in Zhangzho (motorcycle and bicycle tires), Xiamen Jimei (passenger radials) and Chongqing (passenger radials).
No capacity or employment details were released. Work on the expansions will start toward year-end, Cheng Shin said.
Cheng Shin/Maxxis is considered the ninth largest tire maker worldwide, with sales approaching $5 billion.