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Major Tire-Makers Expand Capacity

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TAIPEI, Taiwan (Feb 3) – Eyeing the huge China market, all the top-five rubber-tire makers in Taiwan are actively expanding their capacities. The top-five tire makers are Nangang Rubber Tire Corp., Federal Corp., Cheng Shin Rubber Ind. Co. Ltd., Kenda Rubber Ind. Co., Ltd., and Hwa Fong Rubber Ind. Co., Ltd. Cheng Shin currently owns […]

TAIPEI, Taiwan (Feb 3) – Eyeing the huge China market, all the top-five rubber-tire makers in Taiwan are actively expanding their capacities.

The top-five tire makers are Nangang Rubber Tire Corp., Federal Corp., Cheng Shin Rubber Ind. Co. Ltd., Kenda Rubber Ind. Co., Ltd., and Hwa Fong Rubber Ind. Co., Ltd.

Cheng Shin currently owns the largest tire capacity among local counterparts; while Hwa Fong and Nangang now boast a net profit-margin of 30 % for such products, the highest among counterparts.

Cheng Shin was the first local maker in the line to enter the mainland market, and now owns the largest capacity and most comprehensive product lines there. In China, Cheng Shin now produces bicycle, powered two-wheeler (PTW), agricultural/industrial vehicle, PCR and truck and bus radial (TBR) tires.

Industry sources said that Nangang and Federal originally focused on producing small-sized tires, including those for bicycles and PTWs, in their early years but later on joined production of passenger-car tires in line with the government’s policy of developing automobile-related industries in Taiwan.

Compared to the two counterparts in northern Taiwan, central-Taiwan tire makers, including Cheng Shin, Kenda and Hwa Fong, were luckier because their businesses have been supported by the island’s strong bicycle and PTW exports. In addition, most local small-tire makers also set up overseas production facilities simultaneously with local bicycle and motorcycle makers.

Kenda’s chairman and president Yang Yin-ming said that the competition in small-tire sector has been intense, in China, Yang pointed out, a total of about 180 million tires of various kinds are expected to be produced in 2005, and the annual volume is expected to grow to 258 million units in 2010, when the annual automobile production volume there is expected to reach 10 million units. With the advantages of using the same language and having the same culture background, Yang said, Taiwan tire makers’ operations in China would be their future growth momentum.

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