cens logo

Kenda Expands PCR Tire Production Capacity in China and Taiwan

Oct 04, 2013 | By Quincy Liang

Kenda chairman Yang Yin-ming.Kenda chairman Yang Yin-ming.
Yang Ying-ming, chairman of Kenda Rubber Ind. Co., Ltd., a major tire manufacturer in Taiwan with global operations, recently said that, in the wake of the Federal Reserve of the United States announcing possible tapering of quantitative easing (QE), global material prices may drop in the third quarter to boost Kenda's margin this year.

Kenda registered consolidate revenue of NT$29.34 billion (US$978 million) in 2012, up 5.6% from the previous year, a record high in corporate history. Driven by capacity-expansion plans, some institutional investors forecast that Kenda's earnings per share (EPS) should continue to set new record highs this year.

At a recent shareholders meeting, Yang pointed out that if the U.S. stops or shrinks the scale of QE, capital in the commodity market will exit, driving material prices down. For Kenda, he explained, falling material costs, continued internal cost control and efficiency upgrading, vigorous market development etc. should lead to encouraging sales in the second half and whole year.

Kenda's new passenger car radial (PCR) tire factory in Tianjin, China (its third PCR tire factory) has kicked off production in June. Jimmy Yang, Kenda's vice chairman, disclosed that the Tianjin factory has won the first order from a Middle East customer for 15,000 units. The Tianjin facility will began mass production in July with initial daily capacity of some 4,000 PCR tires, with the capacity to reach 10,000 units by the end of the year, and 20,000 units by 2016.

Regarding equipment utilization, chairman Yang said that currently average utilization at global factories for bicycle tires is about 95%, for motorcycles and passenger cars about 92%, and for bias-ply nylon tires about 88%. After the fourth quarter this year, he added, the rate for bias-ply nylon tires should rise further.

The daily capacity of Kenda's PCR tire factory in Kunshan, Jiangsu Province of China, is about 21,000 units and will be raised to 22,500-25,000 units by the end of this year. Kenda's PCR-tire daily production line at its headquarters in Yunlin, southern Taiwan, is about 5,000 units, to be raised to some 8,000 units by year-end.
By the end of 2013, Yang claimed, Kenda's total PCR tire daily capacity will be about 30,000 units, and to at least double by 2017.

Shenzhen factories to be sold
Kenda operates two factories in Shenzhen, Guangdong Province of China spread across 160,000 square meters, which will be sold profitably and to respond to Shenzhen government's development plans.

At the shareholders meeting, chairman Yang announced that the company just has signed an agreement to buy a 1,000-acre land lot in Kunshan, Jiangsu Province of China to set up a truck and bus radial (TBR) tire factory, with initial investment of NT$3 billion to NT$4 billion (US$100 million to US$133 million) and scheduled to kick off production by 2016, and targeted maximum daily TBR tire capacity of 6,000 units.
Kenda is the second Taiwanese tire maker producing TBR tires, following Cheng Shin Rubber Ind. Co. Ltd.

With the completion of its Kunshan plant, Kenda will become an all-round supplier of tires for bicycle, motorcycles, agricultural machinery, passenger cars, trucks, also having announced plans to be a globally top-20 tire maker in a few years.
In addition, Kenda has also applied to the Ministry of Economic Affairs (MOEA) to set up a new R&D center and PCR tire plant in Changhua, central Taiwan for some NT$10 billion (US$333.3 million).

In southeast China, Kenda has also signed an agreement to buy 885-acres in Huizhou, Guangdong Province of China to set up its sixth production base in China. Kenda will move existing production at the Shenzhen factories to Huizhou, chairman Yang said.

Industry Reports

K, the leading global plastic and rubber trade fair (Photo courtesy of Messe Düsseldorf/ctillmann)

K, The World's Leading Trade Fair for Plastic and Rubber Industry

Jul 24, 2020

2019 K Show, the leading global trade fair for the plastics and rubber industry, had been held in Düsseldorf on 16-23 October, 2019. There were 3,330 exhibitors from 63 nations proved impressively: plastics continue to be an innovative, indispensable material. But they also unanimously underscored the necessity of having operational circular economies along the complete material chain and to this...

Photo courtesy of CENS

Digital Healthcare & Technology at the Heart of Las Vegas CES 2020

Jul 14, 2020

■ Hubert Chih The number of healthcare exhibitors at the 2020 CES in Las Vegas increased significantly by 23% from 2019. According to the analysis and report by the CES organizer, digital healthcare and technology were the focus in the healthcare exhibition. In addition to the continued expansion of healthcare coverage, the reduction of healthcare costs, the improvement of effectiveness and th...

The Taiwan Hardware Show sees global buyer attendance. (Photo provided by Kaigo Co.)

Taiwan's Hand Tools Seeking Opportunities Amid Global Crisis

Jul 10, 2020

Due to the COVID-19 pandemic sweeping the globe, most of the international hardware shows slated for this year has been moved to 2021. However, as Taiwan’s efforts combating the new virus has proven to be successful, the 2020 Taiwan Hardware Show (THS) will continue as scheduled, beginning on Oct. 13 and ending on the 15th at the Taichung International Exhibition Center, thus becoming the only sh...

Industry In-Focus

SINOSTEEL Corporation: Rising price in Steel</h2>

SINOSTEEL Corporation: Rising price in Steel

Jun 05, 2020

Brazil’s new crown pneumonia epidemic has rapidly increased. Brazil’s Vale, the world’s largest iron ore producer, is facing an out-of-control impact. The market is worried that iron ore production and sales will be affected. new highs. Experts from Sinosteel (2002) evaluated that steel prices will rise steadily under the effect of rising costs, with a promising outlook. According to a legal p...

Apple Invests Millions in LED Plant in Taiwan</h2>

Apple Invests Millions in LED Plant in Taiwan

Jun 01, 2020

Apple is considering to invest over US$330 million in a factory in northern Taiwan to manufacture both LED and micro-LED displays for its iPhones, iPads, MacBooks, and other new devices. Apple is teaming up on the new factory with Epistar, Taiwan's top LED producer, and Taiwanese LCD panel maker, AU Optronics. The plant will be located in the Longtan branch of the Hsinchu Science Park and Appl...

Taiwan Machinery Was Applauded in COVID-19</h2>

Taiwan Machinery Was Applauded in COVID-19

May 18, 2020

What the epidemic showed was the amazing flexibility of Taiwan's machine tool industry. Taiwan, which has allowed the semiconductor industry to specialize in the past, has finally realized that these machine tool industries with amazing strength are the "invisible champions" of Taiwan's economy. In early February, three companies -- Habor Precision, Tongtai Machine & Tool and Taiwan Takisawa -...

Supplier News

With professional technics and rigorous quality control, Kung Hsing gains high-reputation in the industry</h2>

With professional technics and rigorous quality control, Kung Hsing gains high-reputation in the industry

Jul 23, 2020

Kung Hsing Plastic Machinery Co., LTD., founded in 1972, is the brainchild of the company President Tsai Chin-lien’s over 48 years of experience in designing and producing extrusion machines. The firm stood by its belief to uphold integrity and offer the best quality and services, eventually becoming a leader in the extrusion machinery industry in Taiwan. Kung Hsing currently has two factories; t...




Jul 21, 2020

■ Tseng Lung-nan Intype Enterprise has built up 55 years of experience in producing extruders, though the firm is placing greater consideration on rapidly degrading of the global environment. In the past 20 years, Intype has become an active contributor to building up a global ecosystem, enabling them to reuse the products manufactured by their own extruders and avoid further waste. The firm t...


YFCM Carbon Fiber Driveshaft Lauded in the field of Modified Cars for its Flexibility </h2>

YFCM Carbon Fiber Driveshaft Lauded in the field of Modified Cars for its Flexibility

Jul 14, 2020

■Hsiao Yung-le Yifeng Technology Co., Ltd. specializes in the research and development of carbon fiber transmission shafts and the manufacture of carbon fiber related products.The carbon fiber material has the characteristics of lightweight, impact resistance, fatigue resistance, and corrosion, and chemical stability is quite high. The product type is increasing in the extensive range with an ...


Insiders' Views

Caption: Pictured from front row, third right, Changhua County Government Economic Affairs Department Director Liu Yu-ping, County Magistrate Wang Huei-mei, Secretary Chen Bo-tsun pose in front of the exhibition booth. (Photo provided by CHCIA)

Changhua County Government Shores up Biz-Matching to Global Buyers

Nov 18, 2019

■Yang Feng-Chun In a bid to assist manufacturers in Changhua County to expand their market reach overseas against severe competition in the globalized market, Changhua County Government has been an active player in pushing for a makeover and innovation of its local small and medium-sized enterprises. This is done in hopes of establishing stronger connection with international markets. An ex...

Paul Master offers high-quality chassis and engines parts for passenger cars, trucks, and industrial trucks. (Photo courtesy of Paul Master)

Paul Master Builds Reputation with Auto Chassis and Engine Parts

Nov 18, 2019

Founded in 1980, Paul Master Auto Parts Co. is headquartered in Taiwan, a professional manufacturer of chassis and engines parts for passenger cars, trucks, and industrial trucks including forklifts. General Manager Terry Liang said the company has its own professional design department, which provides customized products and specifications for global buyers, including automobile steering and...


Nan Hoang Traffic Instrument Co., Ltd.</h2><p class='subtitle'>Taiwan First brakes Technology Co., Ltd. </p>

Nan Hoang Traffic Instrument Co., Ltd.

Taiwan First brakes Technology Co., Ltd.

Sep 04, 2019

Nan Hoang Traffic Instrument Co., Ltd is one of the major manufacturers of automobile friction materials in Taiwan and globally. Chairman Austin Cheng has implemented the double-arrow strategy this year - own brand of “YangPo” is adopted to focus on global channels while the “NHC brand focuses on improving market shares in global markets, such as Europe, America, Asia, Australia, and the Middle E...

Exhibition Highlights

Koelnmesse (Beijing) Co., Ltd.

Announcement on Postponement of China International Hardware Show 2020 (CIHS 2020)

Jul 10, 2020

In view of the continuous spreading of COVID-19 all over the world and the latest epidemic prevention requirements of China and the government of Shanghai, in order to guarantee the health and safety of exhibitors, purchasers and professional visitors, China National Hardware Association and Koelnmesse have prudently decided to postpone China International Hardware Show 2020 (CIHS 2020) from Augu...

Automechanika Shanghai 2020 creates channels for cross-sector collaboration</h2>

Automechanika Shanghai 2020 creates channels for cross-sector collaboration

Jun 16, 2020

This year, Automechanika Shanghai continues to serve the entire automotive value chain by offering opportunities for information exchange, marketing, trade and education. Both vertically and horizontally, from OE, vehicle production to the aftermarket, it incorporates all elements of manufacturing, supply networks, services, new business models and information technology. Companies across the...

Messe Frankfurt (Shanghai) Co Ltd

CAPAS defers to 2021

Apr 20, 2020

Following the Chinese Government’s initiatives to prevent and control the COVID-19 outbreak, the organisers of the Chengdu International Trade Fair for Automotive Parts and Aftermarket Services (CAPAS) have announced the defer of the show’s 2020 edition. The fair, originally scheduled from 21 to 23 May 2020, will now be held from 20 to 22 May 2021. In China, the State Council issued an announc...