Maxxis partners to expand retreading operation

Kian Hon Tyres Sdn. Bhd., the sole Malaysian distributor of the Maxxis tyre brand, is placing a greater focus on retreading the Taiwanese tyre maker’s products with the opening of an expanded retreading facility. The company says it has received the “full support and involvement” of Maxxis to construct a tread rubber production line and expand its retreading plant in Penang. Total capacity at the plant, which first entered operation in 1980, will increase to 120,000 retreads a year and 15,000 tread liners per month. The plant will be the primary retreading and tread liner production site for the Maxxis brand within the region.

The expanded Malaysian plant will serve as a benchmark for the establishment of further retreading plants in Indonesia and the Philippines in 2013; these will be established by local Maxxis partners with the assistance of Kian Hon. In addition to the plant itself serving as a benchmark, the marketing activities Kian Hon has undertaken for Maxxis tyres in Malaysia will also be applied in other markets.

Kian Hon Tyres and Maxxis International are also partnering to establish the Maxxis Asia Education Centre for truck and bus radial tyres. The Malaysian company says it was chosen for this new venture because of its” remarkable performance and aggressive expansion plans for its retreading plant.” The new centre will be located at Kian Hon’s new building in Nibong Tebal, and will feature state-of-the-art infrastructure and first-class equipment. A main aim of the centre is to help Maxxis’ Asian partners upgrade their TBR professional knowledge through regular interactive training and information on the industry’s best practices. The programmes will be conducted by specialists, engineers and trained speakers.

This establishment of the centre and upgrades to Kian Hon’s retreading plant involve a total investment of US$20 million and will create 200 to 400 new jobs.

Kian Hon chairman Tan Yang Nam said that, with the plant’s opening, the company now anticipates a turnover of MYR200 million (£40 million in 2013).  “This year our business turnover is RM150 million so we will expect an increase next year,” he said. Tan reports the company has been experiencing an annual growth of ten per cent.