Taiwan tyre maker Federal Corp. has broken ground on a $300 million car and light truck tyre plant in Taoyuan, its second factory in Taiwan and third overall.
Federal management, local government officials and invited guest were on hand today for the ceremonial first shovelsful of dirt for the 150,640-sq.-ft. building in Taoyuan Industrial Park.
The plant will employ 900 workers making an estimated 6 million tyres a year at full capacity, Federal said. Production should start by late 2016, Chairman Jamie Ma said earlier this at the Reifen Show in Essen, Germany.
The plant will be developed in two phases, lasting through 2020. The site is near Taiwan’s Taoyuan Airport, which also is near Federal’s existing Taiwan factory, which began production in 1960. Federal’s other plant is in Nanchang, China.
Da-Wu Chen, global sales and marketing director, said at the ground-breaking that “building a new factory marks a new chapter on Federal’s global growth strategy and displays Federal’s ambition to march toward a centurial success.
“With the new plant, we can not only grow our business but also meet our client’s needs.”
The ground-breaking coincides with the celebration througout 2014 of Federal’s 60th year in business, which the company is marking with the slogan, “It’s just the beginning.”
“We are proud of our heritage as the first tyre manufacturer to make passenger car radial tyre in the greater China area,” Mr. Chen said.
“Sixty years are filled with legends and stories. On the other hand, just as our 60th anniversary’s slogan…implies, 60, like the end of a clock round, symbolizes a new begin of an era.
“It’s a brand new start for Federal and we believe that with the solid corporate structure and our firm commitment to product quality, Federal will kick off another prosperous sixty years.”
Federal is considered the No. 4 tyre maker in Taiwan and No. 61 worldwide, with sales of $269.2 million in 2013.
Federal will be celebrating its diamond jubilee with customers and other guests at a business meeting and banquet during the upcoming Specialty Equipment Market Association (SEMA) Show in Las Vegas. Federal is not exhibiting at the 2014 SEMA Show but said it intends to showcase its latest lineup to customers in individual meetings.