Maxxis to build tire plant in Indonesia


KARAWANG, (Dec. 9, 2013) — Taiwan’s Co. Ltd. is moving ahead with plans for a plant in Indonesia, budgeting $320 million for a passenger and motorcycle factory in the country’s Karawang area.

Cheng Shin, which does business as Maxxis International, expects the plant’s construction to take 12 to 18 months and be completed in the second half of 2015. To be located in an industrial park near Karawang, the plant will be Cheng Shin’s 11th factory.

The company did not disclose the plant’s projected capacity or employment at this time, but did say it’s located a 69-acre plot of land in Suryacipta City of Industry in Karawang, east of the Indonesian capital of Jakarta.

The plant will be Cheng Shin’s third in Southeast Asia—the others are in and Vietnam—and will serve the “vast, growing Indonesian market” for car and motorcycle tires, the company said.

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This latest expansion announcement comes just months after the Yuanlin, Taiwan-based company—the world’s No. 9 tire maker—disclosed plans for a seventh plant in China.

Source: Tire Business


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