Business

Kenda chairman confirms US factory ‘not ruled out’

Updated
Apr 14, 2025 10:59 PM
Kenda is considering a US factory as part of its strategy to expand globally and manage trade pressures.

Kenda considers US tyre factory as part of long-term global strategy

Kenda Rubber Industrial Co. is exploring the possibility of establishing a tyre manufacturing plant in the United States, according to comments made by chairman Yang Chi-Jen to Taiwanese media.

“The possibility of setting up a tyre factory in the United States in the future is not ruled out,” said Yang, highlighting Kenda’s intention to continue expanding its manufacturing presence beyond Asia.

While no specific plans or timelines have been confirmed, the statement reflects a shift in Kenda’s operational priorities. It also positions the Taiwanese tyre maker alongside other Asian manufacturers who have expanded their presence in North America to reduce tariff exposure and strengthen local supply chains.

Context and current operations

Kenda, which currently operates manufacturing facilities in Taiwan, China, Vietnam, and Indonesia, already maintains a US presence through its American Kenda Rubber Industrial Co. division, focused on sales and distribution rather than production.

The consideration of a US factory follows a broader pattern seen across the tyre industry. Companies like Hankook, Kumho and Nexen have either built or expanded facilities in the US to navigate import tariffs and meet local demand more efficiently.

Operational shift in China

This potential new investment follows a recent operational change at Kenda’s Shenzhen site in southern China. The facility has ceased production and been repurposed as a shipping and sales centre. Production responsibilities for the region have since been redistributed to other Kenda plants, possibly freeing up capital and resources for future international projects.

Strategic alignment

Establishing a factory in the US would allow Kenda to:

◻ Reduce its exposure to US tariffs on Chinese-made goods
◻ Meet increasing demand for locally-produced tyres
◻ Compete more directly with rivals who already operate in the region
◻ Enhance its brand positioning in a market that often favours locally manufactured products

While the statement is exploratory, it offers insight into how Kenda is reassessing its global production and distribution strategy in response to changing trade dynamics and market preferences.

CTA Image
CTA Image
CTA Image
CTA Image
CTA Image
CTA Image
CTA Image
CTA Image
CTA Image
CTA Image
CTA Image
CTA Image

Stay Ahead in the Tyre Industry.

Sign up for our weekly briefing on key developments across the sector.

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
PROUDLY SUPPORTING
Brnad LogoBrnad LogoBrnad LogoBrnad LogoBrnad LogoBrnad LogoBrnad LogoBrnad LogoBrnad LogoBrnad Logo
Brnad LogoBrnad LogoBrnad LogoBrnad LogoBrnad LogoBrnad LogoBrnad LogoBrnad LogoBrnad LogoBrnad Logo
Untitled UI logotextLogo
© 2025 Tyre News Media. All rights reserved.