Kenda Tires May Merge Family-owned Businesses in U.S.

Taipei, Oct.24, 2012 (CENS)--To achieve resource integration, Y.M. Yang, chairman of Kenda Tires Co., said the firm may merge the seven family-owned enterprises or operation bases to expand business scale.

Yang's businesses in the U.S. have about 500 employees, generating in 2011 NT$6 billion (US$200 million) in revenues and NT$100~200 million (US$3.33~6.67 million) in profits, with annual revenues to reach NT$50 billion (US$1.67 billion) once the merger is complete.

Kenda's vice chairman, Q.R. Yang, said the merger will help the firm in operational expansion and market share growth, that the tire business in the U.S. requires a combination of tire and wheel sales, including agricultural & industrial tires, prop tires, and lawn mower tires.

The Yangs own three wheel companies including Monitor, Martin, and Dexstar, as well as the tire & wheel assembly supplier ATW.

To achieve market segmentation, Yang's U.S. businesses will focus on wheel production and assembly services for agricultural & industrial tires, prop tires, and lawn mower tires, with Kenda to supply 90% of agricultural & industrial tires for the said businesses.

Kenda's consolidated revenues reached NT$27.791 billion (US$926.37 million) in 2011, with NT$3.019 billion (US$100.63 million) in consolidated net profits. The firm's subsidiary in the U.S., which focuses on automobile, bicycle, and motorcycle tire sales, saw NT$2.261 billion (US$75.37 million) in revenues, with NT$108 million (US$3.6 million) in net earnings.