Jun. 07, 2012
Announcement concerning the Dissolution of Joint Venture Agreement
OSAKA, JAPAN - June 7, 2012 - TOYO TIRE & RUBBER CO., LTD. (President and CEO: Kenji Nakakura) announces the sale, by mutual agreement of its partners Goodyear Tire & Rubber Company ("Goodyear") and the Mitsubishi Corporation, all of its interest in the joint venture company, Nippon Giant Tire Co., Ltd. ("NGT"), effective May 31, 2012.
1. Reason for the Dissolution of the Joint Venture Agreement
Toyo Tires had established NGT in April 1985 with the Goodyear and Mitsubishi Corporation, for the manufacture and distribution of large-scale OTR tires for mining and construction vehicles. To further the goals of Toyo Tires' Mid-Term Business Plan 2011 (announced May 10, 2011), the decision was made to further concentrate its business resources towards growth and strategic markets.
Following discussions with its long-time partners, it was agreed that the Mitsubishi Corporation and Toyo Tires will transfer to Goodyear the entirety of their respective shares in NGT, and thereby dissolve the joint venture relationship.
2. Outline of the Joint Venture
|(1) Company Name:||Nippon Giant Tire Co., Ltd.|
|(2) Representative:||Michael Martin|
|(3) Location:||338 Nakai, Tatsuno-cho, Tatsuno City,
|(4) Nature of Business:||Manufacture and distribution of OTR tires|
|(5) Date of Establishment:||April 1985|
|(6) Capital Percentages:||Toyo Tire & Rubber Co., Ltd.||30%|
|Goodyear Tire & Rubber Company||65%|
3. Date for Dissolution of the Joint Venture: May 31, 2012
4. Impact on Toyo's Business Results:
The dissolution of the joint venture on Toyo's business is not expected to have a material impact on Toyo's consolidated earnings for the current period.
Toyo Tire Corporation Corporate Communications Planning Dept.
Hyogo Head office Telephone: +81-72-789-9100 Facsimile: +81-72-773-3272
Tokyo office Telephone: +81-3-5822-6621 Facsimile: +81-3-3865-2240