Taiwan's tyremakers seek growth in China

According to CENS, growing demand for car tyres in China is expected to continue soaring, and Taiwanese tyre-makers are ready to take advantage of the opportunity. For example, Cheng Shin expects to see 10 to 20 per cent revenue growth this year, according to some institutional investors said. Other tyre-makers Kenda Rubber Industrial Co., Nankang Rubber Tire Corp., Hwa Fong Rubber Ind., Ltd. and Federal Tire Corp., are also looking at increased business in China.

According to CENS, new car sales in China grew 48.3 per cent in 2009 and 32.4 per cent 2010, respectively. As a result, replacement tyre demand in China is expected to grow 12.3 per cent and 14.4 per cent, respectively, in 2012 and 2013.

In the second half of 2011, Cheng Shin, began a series of capacity expansion projects at its plants in Chongqing, China, and Dolio, Taiwan, CENS said. Kenda completed passenger tyre capacity expansions in Taiwan and China in late 2011. (Tire Review)