Cheng Shin Rubber increased capital in Indonesia factory

On 10 November, Cheng Shin Rubber Ind. Co. Ltd. announced that it is preparing to increase the capital of PT. Maxxis International Indonesia by US$30 million (about £25.53 million pounds; 29.01 million euros). Cheng Shin Rubber said that the capital increase meets the operation’s needs.

According to people familiar with the matter, the $30 million funding could be used to expand motorcycle tyre production at the Indonesian plant. He said that Cheng Shin wanted to expand the production capacity of its Indonesian production base in 2020 but was unable to proceed due to the COVID-19 epidemic.

According to public information, Cheng Shin’s Indonesian factory is located in Jawa Barat, and its products are motorcycle tyres and inner tubes. In the first and second quarters of 2022, the Indonesian company’s revenue was NT$480 million (about £13.15 million; 14.98 million euros) and NT$520 million (about £14.24 million; 16.23 million euros), accounting for about 2 per cent of Cheng Shin’s total revenue. During the same period, 1.9 per cent of the tyre products produced by the Cheng Shin Indonesia factory entered the OE market, and dealers sold the remaining 98.1 per cent.