Toyo Forms New Chinese Subsidiary

Toyo Tire & Rubber Co has announced that it has set up a wholly owned subsidiary in Guangzhou, southern China. Toyo’s new wing will manufacture rubber parts designed to absorb vibration in automobiles. The new subsidiary, capitalised at $11 million, will be known as Toyo Automobile Parts (Guangzhou) Co. Toyo plans to sell the rubber products it produces to the growing number of Japanese automakers that have now have production facilities in China, the company said. Toyo Automobile Parts will begin manufacturing at the end of September. Toyo expects the 130-strong workforce to produce products worth 1.6 billion yen (£8.2 million) in the 2009 financial year, the company said.