Cheng Shin Rubber Builds Factory in Indonesia
TAIPEI, Taiwan – Cheng-Shin Rubber Industries, the world’s largest bicycle tire manufacturer and maker of Maxxis tires, recently reported the opening of a new factory in Southeast Asia.
The company is expecting the facility to be completed and commence production in 2015. Cheng-Shin invests 235 million euro in the new factory which will be based in Jakarta, Indonesia.
Though the company is known for its bicycle tires, a major portion of Cheng-Shin’s brand, Maxxis, is focused on the motorcycle industry. According to Cheng-Shin many of its competitors, who are more focused on automobile tires, have also announced expansion plans in Indonesia.
Cheng-Shin has chosen Indonesia as its new production base as the country is considered by many as an emerging economy. Next to that it is the fourth largest country by population, and the nation has the third largest motorcycles fleet in the world. Moreover, Indonesia is one of the main global suppliers of natural rubber.