Cheng Shin/Maxxis on pace for record sales

ERJ staff report (TB)

TAIPEI, Taiwan (Dec. 19, 2008) - Cheng Shin Rubber Group is headed for record sales in 2008 on the strength of global sales of its Maxxis brand, the company disclosed recently.

Revenue through October was up 22 percent over 2007, when Cheng Shin reported worldwide sales of $2120 million. That revenue volume makes it the world's 12th largest tyre maker, according to ERJ's annual analysis of the global industry.

Despite the global economic downturn, Cheng Shin said it has continued to have strong sales growth in recent months because it is tapping new sources of revenue.

“We have diversified our markets,” said Cheng Shin President Wally Chen. “Oil- and natural resource-rich countries need more tyres. We offer good quality.”

The company has introduced new products for bicycles and sport-utility vehicles during this year, he said.

About 60 percent of Cheng Shin's sales come from its Maxxis brand and the other 40 percent from its Cheng Shin brand as well as private label production.

Cheng Shin distributes tyres in 150 countries.

To expand revenue, the company is looking to expand its retail stores in some key markets next year.

“We want to be involved more deeply in the channel,” Mr. Chen said. “We will open more Maxxis stores in China, Taiwan, Thailand and the Middle East.”

From Tire Business (A Crain publication)