Federal breaks ground on second Taiwan plant

TAOYUAN, Taiwan—Taiwan tire maker Federal Corp. has broken ground on a $300 million car and light truck tire plant in Taoyuan, its second factory in Taiwan and third overall.

Federal management, local government officials and guest were on hand on Monday for the ceremonial first shovel of dirt for the 150,640-sq.-ft. building in Taoyiuan Industrial Park.

The plant will employ 900 workers and make an estimated 6 million tires a year at full capacity, Federal said. Production should start by late 2016, Chairman Jamie Ma said earlier this at the Reifen Show in Essen, Germany.

The plant will be developed in two phase, lasting through 2020. The site is near Taiwan's Taoyuan Airport, also is near Federal's existing Taiwan factory, which began production in 1960. Federal's other plant is in Nanchang, China.

Da-Wu Chen, global sales and marketing director, said at groundbreaking, “Building a new factory marks a new chapter on Federal's global growth strategy and displays Federal's ambition to march toward a centurial success. With the new plant, we can not only grow our business but also meet our client's needs.”

The ground-breaking coincides with the celebration throughout 2014 of Federal's 60th year in business, which the company is marking with the slogan, “It's just the beginning.”

“We are proud of our heritage as the first tire manufacturer to make passenger car radial tire in the greater China area,” Chen said.

“Sixty years are filled with legends and stories. On the other hand, just as our 60th anniversary's slogan … implies, 60, like the end of a clock round, symbolizes a new begin of an era.

“It's a brand new start for Federal, and we believe that with the solid corporate structure and our firm commitment to product quality, Federal will kick off another prosperous 60 years.”

Federal is considered the No. 4 tire maker in Taiwan and No. 61 worldwide, with sales of $269.2 million in 2013.

Federal will be celebrating its Diamond Jubilee with customers and other guests at a business meeting and banquet during the upcoming Specialty Equipment Market Show in Las Vegas. Federal is not exhibiting at the 2014 SEMA Show but intends to showcase its latest lineup to customers in individual meetings.