Cheng Shin Rubber to build plant in Indonesia; announces major expansion plans
Taiwanese tyre company Cheng Shin Rubber Ind. Co will invest $300 million to build a new tyre manufacturing plant in Indonesia aiming to tap the country’s domestic demand for motorcycle and car tyres, reported Focus Taiwan.
Construction work is slated to start early next year and production is expected to take place at the end of that year, said Chen Shin Rubber president Chen Yun-hwa in an annual general meeting of share holders.
According the report, the president also said that the company is planning to use the Indonesian market as a springboard to enter other Muslim market. Chen Shin Rubber will launch a fund-raising campaign to pay for the investment in Indonesia.
With the plant in Indonesia, the company would have a broader global production base in Asia, including plants in Taiwan, China, Vietnam and Thailand.
The tyre company will expand its production capacity of a plant it operates in Taiwan’s Yunlin County, as well as factories in China’s Xiamen, Zhangzhou and Chongqing by the end of this year. For these expansion activities, Chen Shin Rubber is expected to spend $500-$600 million in capital expenditure this year.