New Tire Plant Announced
27.08.2009
Osaka, Japan – August 27, 2009- Toyo Tire & Rubber Co., Ltd. (President and CEO: Kenji Nakakura) hereby announces that it will construct a wholly-owned new tire plant in China to respond to increasing tire demands associated with the rapid progress of motorization in the Chinese market.
In response to robust demand in the developing Chinese market, the Company has determined to follow the North American model and construct profitable infrastructure in China.
The Company is currently selecting the location which is expected to be in the coastal region of China to expedite tire deliveries to automakers in China. Tire production is planned to commence towards the end of the year 2011. The initial investment for the first phase will be 10 billion yen. The production capacity of the new plant will initially be 2 million units annually (passenger car and light truck tires for the Chinese market). The plant is expected to gradually ramp up its capacity in accordance with the market expansion.
A further announcement will be made once the location has been determined.
It has also been resolved to terminate the Company's joint venture agreement regarding tire manufacturing in China and a separate statement has been released concerning this.
Outline of the New Plant
Location: The coastal region of China
Production Items: Passenger car and light truck radial tires
Beginning of Operation: At the end of the year 2011 (plan)
Production Capacity: 2 million units annually (the initial phase)
Number of Employees: Approximately 400 (plan)
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