Aug. 04, 2011
TOYO TIRES to Establish New Tire Plant in Malaysia
Osaka, Japan – August 3, 2011 - TOYO TIRE & RUBBER Co., Ltd. (President and CEO: Kenji Nakakura) announces a decision by its Board of Directors today to construct a new tire plant in Perak, Malaysia, in order to strengthen Toyo Tires’ production-supply capability for passenger car and light truck tires centering around the Asia region.
In its 2011 Mid-Term Business Plan, Toyo Tires has set this year’s net sales targets at 310 Billion Yen and operating income at 24 Billion Yen in its Tire Business. To that end, Toyo Tires is establishing a 3-point global production-supply structure based on Asia, Japan and North America, in order to achieve a world-wide supply of 45 million tires in 2015 (increase of 55% from 2010).
In the suburb of Perak, Malaysia, which will be the planned construction site for the new factory, the Silverstone Berhad, part of the Toyo Tires Group of companies, has its Malaysia plant. An efficient and effective operation is being envisaged, by pursuing the synergistic effects of the dual plants.
Approximately 20 Billion Yen will be initially invested in the new plant. Production will start at about 2.5 million passenger car tires and light truck tires manufactured annually for domestic Malaysia, the neighboring ASEAN countries and other regions. Then, it is planned to achieve the annual production structure for 5 million tires by 2015, with goals to achieve an annual production scale of 10 million tires in the future.
A subsidiary has been established in April of this year in Ipoh, Malaysia to prepare for the start-up of this new factory.
◆Overview of the New Factory
|1. Planned Construction Site||Perak, Malaysia|
|2. Size of the site||Approx. 480,000 m2 (about 120 acres)
* Scale of approx. 10 million tires produced annually
|3. Phase 1|
|(1) Beginning of Operation||April 2013, to begin mass production (planned)|
|(2) Production Capacity||5 million tires per year (planned for FY2016)|
|(3) Number of Employees||Approximately 800 Persons (planned for FY2015)|
|(4) Amount of Investment||Approximately 20 Billion Yen|
◆Overview of New Subsidiary Company
|1. Company Name||Toyo Tyre Manufacturing (Malaysia) Sdn Bhd|
|2. Company Representative||Kazuyuki Ito, Corporate Officer of Toyo Tire & Rubber Co., Ltd. (planned appointment)|
|3. Head Office||Ipoh, Malaysia|
|4. Date Established||April 2011|
|5. Nature of Business||Manufacturing and Sales of Passenger and Light Truck Tires|
|6. Equity Percentage||Wholly-owned by Toyo Tire & Rubber Co., Ltd.|
The Impact on Business Results
The establishment of this new tire factory will have minimal impact on the Company's consolidated business results for the Fiscal Year ending in March 2012.
No information on this news release is intended as either an offer to sell, or a solicitation of an offer to buy, any securities of TOYO TIRE & RUBBER CO., LTD. When making any investment decisions, investors should review securities reports, filed or submitted by the Company with the relevant regulatory authorities, and should exercise their own judgment in making their investment decisions. Furthermore, with the exception of historical facts, any current plans, strategies or beliefs held by TOYO TIRE & RUBBER CO., LTD. As expressed in this news release shall be considered a forward-looking statement. These statements are based on management's assumptions and beliefs in light of the information currently available. The assumptions involve risks and uncertainties which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward looking statements.
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Toyo Tire Corporation
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