Yokohama Establishes Chinese High-pressure Hose Subsidiary

Following the news that it will double the size of its Thailand production plant, Yokohama has also announced that in December it will establish Yokohama Hose & Coupling (Hangzhou) a subsidiary for assembling and selling high-pressure hoses and their metal fittings in China. The subsidiary’s plant will be located in the Economy and Technology Development Zone, Hangzhou City, Zhejiang Province and commence operation in April 2005. The new company will be capitalized at $350,000.

In China, the demand for construction machinery has been rapidly increasing because of consecutive large-scale projects associated with the Beijing Olympic Games in 2008 and the Shanghai Expo in 2010. High-pressure hoses are a indispensable components for hydraulic devices used in construction machinery. At least for the time being, the new company will concentrate on the OEM business with Japanese construction machinery makers. At the same time, however, the company says it will “proactively conduct market research” in connection with the demand for replacement high-pressure hoses. It also plans to begin local production of metal fittings as soon as possible.