Aug. 27, 2009
TOYO TIRES New Tire Plant in China
Osaka, Japan - August 27, 2009- TOYO TIRE & RUBBER Co., Ltd. (President and CEO: Kenji Nakakura) hereby announces that it constructs its wholly-owned new tire plant in China to respond to increasing tire demands in accordance with the rapid progress of motorization in the Chinese market.
In response to robust demand in the developing Chinese market, the Company determined to construct a plant in China where can be a profitable base next to the North American market.
The Company is currently selecting the location. The expected location is the coastal region of China. The Company plans to commence production towards the end of the year 2011. In the future, the Company expects to supply tires to automakers in China. The investment amount of the initial phase is approximately 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.
Now, the project team is working toward fixing the location. Please allow us to inform you as soon as our decision is made.
It has also been resolved to terminate its joint venture agreement regarding tire manufacturing in China in accordance with the construction of a wholly-owned new tire plant. Please refer to the "Announcement of the Termination of the Joint Venture Agreement of China" for details.
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)
Toyo Tire Corporation
Corporate Communications Dept.
Hyogo Head office Telephone: +81-72-789-9100 Facsimile: +81-72-773-3272
Tokyo office Telephone: +81-3-5780-8158 Facsimile: +81-3-5780-8159