Taiwan tyre manufacturer Cheng Shin Rubber has decided to increase the capital of its Indian subsidiary Maxxis Rubber India Private Limited through its funds. The capital increase is about 3.36 billion rupees (about £32 million; €38 million).
On 30 May, Cheng Shin Rubber released its 2023 annual report. In terms of sales, the tyre manufacturer’s sales in 2023 were all lower than the previous year. Among all categories of tyres, the sales of motorcycle tyres increased by 0.34 per cent year-on-year, which was flat. However, the sales volume of PCR, TBR, bicycle tyres, inner tubes and other tyre products all declined to varying degrees. The decline in PCR and TBR products was 12.92 per cent and 26.08 per cent.
Cheng Shin Rubber has not yet disclosed its 2023 annual report, but it announced its 2023 revenue on the Taiwan Securities Exchange. Compared with the previous year, Cheng Shin Rubber’s yearly revenue decreased by 2.08 per cent.
Recently, Cheng Shin Rubber held a third-quarter briefing meeting. As of September 30, 2023, the company can produce 23,000 all-steel radial tyres and 179,000 semi-steel radial tyres per day. From January to September, the tyre manufacturer’s revenue and net profit were approximately NT$73.5 billion (about £1.85 billion; €2.16 billion) and NT$5.6 billion (about £140 million; €160 million).
Recently, the World Brand Summit 2023 was held in Beijing. Tyrepress China learned that nine tyre manufacturing companies had been listed in “China’s 500 Most Valuable Brands”.
Luo Yongli, deputy general manager of the company, recently told a briefing that he is optimistic about the operation of Cheng Shin in 2023. In the past, Cheng Shin has reportedly significantly reduced capital expenditures to combat adversity in the operating environment. But with the overall situation expected to improve, the tyre maker will start expanding production capacity, including launching a 40 million tyre capacity expansion plan at factories in mainland China.
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.
Recently, four Taiwanese tyre manufacturers, Cheng Shin, Nankang, Federal and Kenda, successively announced their September results. In September, Cheng Shin’s operating revenue was approximately NT$8.875 billion (about 244 million pounds, 280 million euros), an increase of 13.03 per cent over the same period last year.
On 7 September, an administrative penalty decision issued by Xiamen’s environmental protection department showed that Cheng Shin Tire (Xiamen) Co., Ltd was fined 23,857 yuan for an exhaust gas problem.
On the afternoon of 16 August Cheng Shin announced that production at its Chongqing factory would be suspended between 16 and 23 August to cooperate with the local government’s power policy. It is reported that Changshou District, Chongqing City, where the Cheng Shin factory is located, has experienced continuous high temperatures recently, and the power supply gap has continued to expand. The local government advocates for industrial enterprises to stop production to ensure electricity consumption for residents and ease the pressure on the power supply.
Vietnamese officials have interpreted the US Department of Commerce (DOC) anti-dumping investigation preliminary conclusions as “very positive” for Vietnam-produced car tyres. There was even hope that cooperative Vietnam-based tyre manufacturers Local newspapers read this mean Vietnamese tyre factories had been “cleared” by the investigation.
Former Maxxis International president Dr Wally Chen is leaving retirement to assume the chairmanship of the company. Dr Chen, who oversaw Maxxis’ rise to the ranks of the world’s top 10 tyre companies, will assume the chairmanship effective immediately following a vote by the company’s board of directors at a recent meeting. He replaces former Maxxis/Cheng Shin chairman Robert Lo (pictured).
The latest global tyre market share figures from tyre industry analyst Astutus Research show how long-established, leading players headquartered in Japan, Europe, and North America have seen their volume share diminish, while Chinese, ASEAN, and selected other markets’ tyre manufacturers’ share has risen. The analyst states that in aggregate, the ten leading PCLT tyre manufacturers based in Japan, Europe and North America (J-E-NA) have lost almost 6 percentage points of market share since the end of 2011 (OE and replacement segments combined, volumes in tyre units). In part this reflects a strategic choice of some to focus on the higher value premium segments of the market.
The leading Taiwanese tyre manufactures are reportedly planning to raise prices by between 8-12 per cent during 2017. According to local news reports, the price hike is a reaction to the jump in synthetic rubber and natural rubber prices.
Maxxis exhibited at Reifen from a prominent Hall 3 stand commensurate with the brand’s global positioning, and increasingly with its focus on Europe. Robert Lo, chairman of Maxxis manufacturer Cheng Shin Rubber Ind Co and Derek McMartin, managing director of Maxxis International UK explained to Tyres & Accessories that the stand included a portfolio containing the brand’s first “dedicated European products”. The new M36+, launched at Reifen, is perhaps the most prominent example of this.
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Cheng Shin
Cheng Shin
Cheng Shin
Xiamen Haicang Ecological Environment Bureau
Xuda Wang
Ministry of Industry and Trade of the Socialist Republic of Vietnam [MoIT
Maxxis International