Cheng Shin Rubber Industry Co. is considering building its seventh plant in China to expand its presence there. With six factories in southern and central China, Cheng Shin’s plan to construct a new plant in northern China would help it satisfy growing demand, vice president Wu Hsuan-miao said recently.
"We will come up with a concrete plan on the construction of a new plant early next year, when the global demand for tires is set to stabilize," Wu reportedly said as per Taipei Times.
Cheng Shin needs to expand its production capacity to meet demand, as the company’s existing factories are likely to reach full capacity by the end of this year, from about 90% capacity at the moment, Wu said.
Cheng Shin, known for its CST, Maxxis, Sakura and Presa brands, also sees demand in the emerging market is growing. "Demand in China and other emerging markets, such as India and Indonesia, is growing faster than in developed countries," the company said in a report distributed to shareholders. (Tire & Accessories)
