Strong Year Puts Maxxis Maker in Global Top 10

After posting a strong 2009, Taiwan’s Cheng Shin Rubber – producer of the Maxxis brand – is now among the world’s top 10 tiremakers.

According to Tyres & Accessories, which compiled the rankings, the numbers show that Cheng Shin Rubber leapfrogged Toyo and Giti Tire into 10th place in 2009. Last year, the company ranked 12th on the Tyres & Accessories leader board.

Cheng Shin Rubber reports that it recorded a turnover of 1.887 billion euros which, although only a slight increase over the previous year, demonstrates the company’s relative resilience to the global financial crisis.

Competitors Toyo and Giti Tire, on the other hand, lost sales during the period, enabling Cheng Shin to go up two steps on the ladder.

Commenting on Cheng Shin’s recent rapid growth, Morgan Stanley’s Taiwan automotive industry analyst Jeremy Chen described the company’s 2009 financial results as “very strong.” In his words, the results point to the booming Chinese tire market and to the relative newcomer’s potential threat to existing tire giants.

“The strength and growth of local tiremakers actually are a growing threat to Michelin – for which Chinese sales are currently circa 5%-10% of overall sales. However, in reality there is probably room for everyone to grow in China at present…”

The company’s strong margins also garnered praise from the analyst: “We highlight that Cheng Shin’s full year 2009 operating margin (20%) remained well ahead of its peers’ (12%-15%), providing more evidence of the company’s strong competitiveness and execution capability. Although we expect margins and profits to fall this year, due to rising material costs, we retain an overweight rating on Cheng Shin, as we continue to see the stock as one of the best plays on China’s booming auto market.” (Tyres & Accessories)

Ascot Supply Corporation, based in Newnan, Georgia, has selected Mark Paquette for the newly created position of vice president. In this position, Ascot Supply said Paquette will oversee the growth of the company's products, corporate profitability, manage marketing and advertising and assume many other responsibilities.

He will work under the direction of current President David Kessler and officially begin his new role on June 3. Paquette joined the tire and automotive industry in the early 1980s at his father's tire shop, and his contributions to Mohawk Rubber Sales were instrumental in the company's growth and eventual sale to Myers Tire Supply in 2021, according to Ascot Supply. Paquette eventually was given a promotion to the role of director of operations at Myers Tire Supply.