Press Release
Jan. 28, 2010
TOYO TIRE to Establish New Subsidiary to Manufacture Tires in China
Osaka, Japan – January 28, 2010- TOYO TIRE & RUBBER Co., Ltd. (hereafter, "Company") (President and CEO: Kenji Nakakura) announces its decision to establish a wholly-owned subsidiary company at Zhangjiagang City, Jiangsu Province, China, to manufacture passenger and light truck tires.
The Company had previously announced in a press release dated August 27, 2009, its intention to build a new tire plant in China, and this new subsidiary is expected to meet the growing demand for tires generated by the rapid growth in automobile use in China.
The Company determined that Jiangsu Province would be the ideal location to establish the new factory, as it already has the necessary infrastructure, work force, and logistical support.
Operations are expected to commence by the end of 2011. Initial production capacity during the first phase will be two million units of passenger car and light truck tires.
Outline of The New Company| Company Name: | Toyo Tires Zhangjiagang Co., Ltd. |
| Location: | Zhangjiagang city, Jiangsu Province, China |
| Representative: | Chairman, Mitsuru Hitotsuyanagi (Corporate Officer, Toyo Tire & Rubber Co., Ltd.) |
| Primary Business: | Manufacturing and Sales of Passenger and Light Truck Tires |
| Total Initial Investment: | US$ 98 million (includes paid-in capital of US$50 million) |
| Ownership: | Wholly-owned by Toyo Tire & Rubber Co., Ltd. |
| Date of Establishment: | Approximately April, 2010 |
| Commencing Operations: | Approximately year-end, 2011 |
| Initial Production Capacity: | 2 million units annually (first phase) |
| Number of Employees: | Approximately 500 |
Outlook: The establishment of this new subsidiary company will have no impact on the Company's consolidated financial results for the Fiscal Year ending in March 2010.
Toyo Tire Corporation
Corporate Communications Dept.
Hyogo Head office Telephone: +81-72-789-9100 Facsimile: +81-72-773-3272
