Cheng Shin boosting India, Indonesia investments
Cheng Shin Rubber Industry Co. Ltd. is planning to boost capital investment at its Maxxis Rubber India Pvt. Ltd. and P.T. Maxxis International Indonesia subsidiaries.
Maxxis Rubber India Pvt. Ltd. is to receive $15 million "for the procurement of feedstock and as a supplement for operational funding," according to a Jan. 24 Cheng Shin statement.
This, it noted, takes the India unit's total investment to $92 million. It runs a plant in Gujarat province that came on stream in mid-2017 with a daily capacity of 20,000 motorcycle tires in phase one.
The Indian subsidiary posted a $2.3 million net loss in the third quarter of last year, Cheng Shin also reported.
P.T. Maxxis International is to receive a $30 million investment, putting its total investment at $110 million, Cheng Shin said.
The funds will be used "for the procurement of production equipment and as a supplement for operational funding," the company added.
The subsidiary's Deltamas, Indonesia, plant for motorcycle tires and passenger car tires was slated to begin production late last year, the company stated previously.
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