Taipei,Dec.19,2012(CENS)--Kenda Tires Co.'s chairman Y.M.Yang pointed out that to become a top-20 tire maker globally,the firm will invest NT$3 billion(US$100 million)in 2013 to expand plants in China and Taiwan,as well as merging the seven family-owned enterprises by mid-2013.Institutional investors estimates the firm's revenues in 2013 to likely exceed NT$35 billion(US$1.17 billion).
Kenda's plants in Tianjin,China is scheduled to come online in May 2013;while the plant in Yunlin,Taiwan,which started up 2011,will raise daily capacity in 2013 from 5,000 passenger vehicle tires to 8,000.
Daily capacity of Kenda's plant in Kunshan,China has improved from 17,500 passenger vehicle tires to 20,000,and will rise to 22,500 after installing new equipment.
To achieve resource integration,Yang said the firm may merge the seven family-owned enterprises by mid-2013 to expand business scale and market share.
Institutional investors predict Kenda will achieve NT$2.42 billion(US$80.67 million)in net profits in 2012 and NT$3.3(US$0.11)in earnings per share(EPS),driven by continuous plant expansion and 10%year on year(YoY)decline in natural rubber price in 2012 and 15%YoY decrease in synthetic rubber prices.
Yang stated that the Oct.1st holiday in China has affected the firm's operation in China in October,while the sluggish economic climate in the West has also undermined plant performance in Taiwan in November.However,the firm has witnessed rebounding orders in December for passenger vehicle tires,bicycle tires,and motorbike tires.
