Taiwanese tyre maker Kenda Tyres is planning to merge with 7 family-owned businesses based in the US to receive the company’s aim of resource integration, according to Y.M. Yang, chairman of Kenda Tyres Co.
Yang’s US-based enterprises have generated NT$6 billion in revenues and NT$100 – 200 million in profits with the expectation to reach up to NT$50 billion annually when the merge becomes complete. The company is employing 500 people in the US.
Q.R Yang, Vice Chairman of Kenda said that the merge will help in expanding the operations of the company as well as the growth of the market share as the tyre industry in the US is required to have a combination of agricultural and industrial tyres, lawn mower tyres, and prop tyres to obtain tyres and wheels sales.
The Yangs are the owners of three different wheel firms namely Dexstar, Martin and Monitor and wheel assembly supplier ATW.
To reach the market share goal, Yang’s US enterprises will be focusing on producing wheels and assembly services, with Kenda supplying 90% of their agricultural and industrial tyres. (RJA)