Lo said the new plant will make tires for cars and motorcycles for Southeast Asia as the company moves away from China investments in line with rising wages and costs in that country. Cheng Shin will face tight competition from established tire producers as well as new competitors. South Korean tire maker Hankook Tire, the seventh-largest such firm, opened a $350m (€257.5m) plant in Cikarang, West Java, in September. Hankook is seeking by 2018 to invest up to $1.1bn (€809.4m) in the plant, which will act as an export base for the North America and the Middle East, as well as a regional hub for emerging Asian markets. Two Indian tire manufacturers JK Tyre & Industries and Apollo Tyres have expressed interest in building plants in Indonesia that may cost at least $600m (€441.5m). Italian company Pirelli has set up a joint venture with the automotive component-maker subsidiary of Astra International to build a $120m (€88.3m) motorcycle tire factory in Indonesia.