INDONESIA: Taiwanese tire maker eyes Indonesian market

Construction of the new plant is scheduled to start early next year and the facility is expected to begin production at the end of the year.

The investment is aimed at the Indonesian market rather than exports, Cheng Shin president Wally Chen said at the company's annual general meeting in Changhwa County, Taiwan.

Chen said the size of the motorcycle and car market in Indonesia is growing rapidly, prompting Cheng Shin's clients there to ask the Taiwanese supplier to open a local production line.

Chen told shareholders that Cheng Shin is planning to use the Indonesian market as a springboard to enter other Muslim markets.

Cheng Shin vice president Wu Hsuan-miao said the company would launch a fund-raising campaign to pay for the Indonesia investment.

He said after the factory in Indonesia becomes operational, Cheng Shin will have a broader global production base in Asia, with its other plants in Taiwan, China, Vietnam and Thailand.

Wu said the company also plans to expand the production capacity of a plant it operates in Taiwan's Yunlin County, as well as its factories in China's Xiamen, Zhangzhou and Chongqing by the end of this year.

He said that due to the expansion at the factories, Cheng Shin is expecting to spend USD 500 million to USD 600 million on capital expenditure this year.

Source: Daily "Taipei Times", Taipei; 18 June 2014
(Syed Rashid Ali, Karachi, Pakistan)