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Press Release

Dec. 19, 2002

Establishment of a New Tire Marketing Company in China

December 19, 2002 OSAKA, JAPAN -- Toyo Tire & Rubber Co., Ltd. (President: Yoshio Kataoka) and Mitsubishi Corporation (President: Mikio Sasaki) reached an agreement for the establishment of a joint venture company, Toyo Tire (Shanghai) Trading Co., Ltd., which will market automobile tires in China.

In 1995, Toyo Tire & Rubber set up a tire manufacturing joint venture company, Cheng Shin-Toyo Tire & Rubber (China) Co., Ltd. in Jiangsu Province, China. Since 1997, Cheng Shin-Toyo Tire & Rubber has manufactured automobile tires, and has marketed them in China through local dealers. However, with the Chinese tire market expected to expand further in the wake of China's entry into the WTO and the development of motorized society, an additional marketing presence has become essential.

The new joint venture was established to enable a more adept response to the growing tire demand in China by enhancing marketing capabilities. Measures to accomplish this objective include developing a sales network to market both locally-made tires and imported tires from Japan in the Chinese market. In terms of the domestically-produced product, Toyo Tire (Shanghai) plans to market automobile tires manufactured by Cheng Shin-Toyo Tire & Rubber, and radial tires for trucks and buses to be produced by Chen Shin-Toyo-Petrel Tire Co., Ltd., which will start operations in 2004. (Please refer to press release No.680, September 13, 2002.)

Toyo Tire & Rubber forecasts first-year sales of US 7.6 million dollars for Chen Shin-Toyo-Petrel Tire.

Profile of the New Company

  1. Company name: Toyo Tire (Shanghai) Trading Co., Ltd. 2. President: Masahiko Yamamoto
  2. President: Masahiko Yamamoto
  3. Location: Shanghai, China
  4. Established: January 2003
  5. Capital: US$ 1 million
    (Ownership: Toyo Tire & Rubber 60% Mitsubishi Corporation 40%)
  6. Business line: Marketing of automotive tires in China
  7. Employees: 17 (including 3 Japanese)
  8. Sales plan: US$7.6 million projected for FY2003*
    US$14.0 million projected for FY2004*
    US$31.0 million projected for FY2005*
    * Fiscal years ending December 31

 

 

Toyo Tire Corporation
Corporate Communications Dept.
Hyogo Head office Telephone: +81-72-789-9100 Facsimile: +81-72-773-3272