Toyo to Spin Off Nitto Tire

Toyo Tire & Rubber Co. Ltd is to “spin off” the Nitto brand division of Toyo Tire (USA) Corp, incorporating it as a separate company. The new business will be called Nitto Tire North America Incorporated, from 1 July 2005.

Toyo reports that the move follows the company’s efforts to enhance the value of the Nitto brand in the US market. As a result the company says that sales of conventional and SUV tyres have grown steadily. In a statement on the subject, Toyo was confident that Nitto Tire North America Inc will “further boost sales of Nitto tyres, especially from the new US plant scheduled for completion in 2006.”

The new company will be based in Cypress, California, and will be led by chairman Shozo Kibata and president, Tomoshige Mizutani. The business will be capitalised at $7 million and will employee 25 personnel.