Kian Hon Tyres launches RM20 million facility in Nibong Tebal

Kian Hon Tyres launched a RM20 million new facility in Nibong Tebal, the first Maxxis retreading plant in the Asean region.

Kian Hon, which had partnered with Taiwans' Cheng Shin Rubber Ind Co Ltd (also known as Maxxis International) to form Maxxis International Malaysia, will be the main retreading and tread liner production hub for Maxxis tyres in this region.

With the opening of the facility, Kian Hon's chairman Tan Yang Nam said the company expects a RM200 million business turnover next year.

"This year our business turnover is RM150 million so we will expect an increase next year," he said.

Tan said the company has been experiencing 10 per cent growth each year.

"This plant may also see an increase in our expenditure by 30 per cent," he said.

However, Tan said the country's economy is still uncertain for early next year especially with the uncertainty surrounding the country's political situation.

"Everyone in the business community is waiting for the elections to be over.

"So, many companies are holding back on major decisions for now and we have to be extra cautious in early 2013 until after the general elections," he said.

The new retreading and tread rubber production plant will have a maximum capacity of 120,000 retreaded tyres per annum.

"The production line will also be able to produce about 15,000 pieces of tread liners each month," he said.

Retreading is the recycling of tyres for lorries and trucks where tread liners are fused onto old tyres to produce retreaded tyres.

The new plant will serve as the benchmark for Maxxis to set up more retreading plants in Indonesia and Philippines next year.

The marketing activities undertaken by Kian Hon for Maxxis tyres in the Malaysian market will also be used as case studies for implementatin in the Asian region.

The new three-storey building, covering 42,021 sq ft, will also house the Maxxis Asia Truck and Bus Radial Education Centre (Matec) to serve as a knowledge hub for Maxxis tyres distributors and other stakeholders.

Maxxis International president Dr Wally Chen commended Kian Hon on the opening of the new plant which is a significant investment into green technology.

He said that it would benefit not just Kian Hon but also Maxxis and it stakeholders as the plant will produce more products at a lower cost while keeping millions of tyres out of landfills, fulfilling the company's "Earth-friendly" practices.

Maxxis International is well-known for its tyre products for automotive, light truck, motorcycle, ATV, bicycle, lawn and garden and industrial use.

It is the top tyre maker in China and Taiwan and ranked number nine globally with operations spread out in Asia, Africa, Europe, United States and South America while its products are distributed to over 170 countries.