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Cheng Shin Rubber plans seventh tire plant in China

Taiwan’s Cheng Shin Rubber Industry has announced plans to build its seventh tire plant in China, though details of the project are still being worked out. The announcement from vice president Wu Hsuan-miao came in June, after the company’s annual general meeting. Wu said that the new plant would be located in northern China, but further details would not announced until early next year. The comnpany’s existing plants are operating at 90% of capacity, and are expected to reach full capacity by the end of the year. Cheng Shin/Maxxis International is the world’s ninth largest tire company, with 2012 sales of $4.6 billion and factories in China, Taiwan, Thailand, and Vietnam. The company opened two new plants in central China over the last 18 months.

Cheng Shin Vice President Wu Hsuan-miao disclosed the company’s intentions for the plant in remarks made at the company’s annual meeting recently.

With six plants and a new test facility in China, Cheng Shin has become one of the largest tire companies in China.

The company’s recent investments include:

• $150 million for a 9.2 million-sq.-ft. tire test proving ground adjacent to its Maxxis International tire plant in Kunshan City; and

• $600 million for a passenger tire plant in Chong Qing and Xiamen, both rated at 30,000 tires a day.

Cheng Shin in 2011 said both new plants would be based on the design of its Maxxis International (Thailand) Co. Ltd. factory in Thailand’s Rayong Province, and both would be designed to serve the needs of the company’s export and domestic markets, including original equipment requirements.

Besides the plants in China and Thailand, Cheng Shin has tire factories in Vietnam and Taiwan.

It goes to market with the brands Cheng Shin, CST and Maxxis and is represented in North America by Maxxis International in Suwanee, Ga., and Brampton, Ontario.

Cheng Shin only recently launched a website covering its global businesses, with pages devoted to its various businesses—motorcycle, bicycle, ATV, industrial and commercial. It also maintains a site for the Maxxis brand.

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