Cheng Shin and Toyo Agree to End Joint Ventures
8/28/2009By mutual agreement, Cheng Shin Rubber Ind. Co., Ltd. d/b/a Maxxis International and Toyo Tire & Rubber Co. Ltd. will dissolve their joint ventures at factories in Kunshan, China and Xiamen, China.
Currently, Toyo owns approximately 22% of Cheng Shin-Toyo Tire & Rubber (China) Co. Ltd., located in Kunshan near Shanghai, and approximately 21% of Cheng Shin-Toyo Tire (Xiamen) Co. Ltd. The Xiamen plant manufactures radial truck tires, while the Kunshan operation produces passenger and light truck tires. Cheng Shin has agreed to purchase Toyo’s shares in the two ventures and will retain 100% ownership of both facilities.
The timing of the dissolution is expected to benefit both companies. Cheng Shin and Toyo believe that they have achieved the goals originally set for the joint ventures and anticipate continued growth with the new arrangement. Full ownership of both plants will allow Cheng Shin to increase its focus on the growing local market in China for both replacement and original equipment business.