Taiwanese firm sees long-term benefits here
Posted on October 15, 2012, Monday
GEORGE TOWN: Taiwan’s Cheng Shin Rubber Industry Co Ltd, which operates as Maxxis International, expects its new innovative business in tyre retreading to bring long-term benefits to the group.
Maxxis’ president Dr Wally Chen said the company was happy to provide support to the construction of new retreading plants in Malaysia, Indonesia and the Philippines, which are all scheduled for completion next year.
“These new plants, along with Penang-based Kian Hon Tyres Sdn Bhd plant in Malaysia, will generate 200 to 400 new jobs in the region,” he told reporters here.
Chen was met after the signing of a memorandum of understanding to establish Maxxis Asia Education Centre for truck and bus radial tyres and collaboration on tyre retreading project.
Also present were Northern Corridor Implementation Authority (NCIA) chief executive Datuk Redza Rafiq, Kian Hon Tyres chairman Tan Yang Nam as well as its managing director Sydney Tan.
It is learnt that Maxxis would invest about US$20 million for initiatives to further promote smart and modern innovative practices as well as environmentally friendly.
On Maxxis’ performance, Chen said the company is confident of further growth despite global economic challenges due to its broad product segment and good local partners worldwide.
For over 45 years, Maxxis has delivered high-quality tyres to both original equipment and aftermarket customers, offering products for motorcycles, lawn and garden products, race karts, industrial vehicles, trailers, trucks and buses.
With annual revenue of US$4.3 billion last year, Maxxis is ranked as the top tyre maker in China and Taiwan, and ninth among global tyre companies, distributing its products across 170 countries.
On Maxxis Education Centre in Nibong Tebal, Penang, he said it would allow customers in Asia to share and experience the latest technology as well as exchange information especially on retread segment.
It is understood that retreading will reduce oil dependency and pollution from tyre disposal by 70 per cent and 80 per cent, respectively and is 30-50 per cent cheaper than purchasing a new tyre.
Meanwhile, Redza said Maxxis and Kian Hon Tyres’ collaboration was part of NCIA’s phase two initiative in broadening private sector participation and leverage on logistics network to create more activities.
He said Northern Corridor was an ideal location for the partnership as it would encourage value adding activities and increase the local content of raw natural rubber export.
Redza said the size of tyre and tyre retreading business in terms of output grew by about 20 per cent since 2006, adding that, the market value increased to RM261.17 million last year from RM159 million in 2010.
Kian Hon Tyres, a reputable supplier of high-quality tyre products for over 30 years, is the official distributor of Maxxis tyres in Malaysia. — Bernama