Suzhou Yokohama Tire Breaks Ground in China

Yokohama Rubber Co., Ltd., broke ground for the construction of its new Suzhou Yokohama Tire Co., Ltd., factory on 11 August. The new “affiliate” facility will produce and sell steel radial tyres for truck and buses in China.

Yokohama invited the deputy mayor of Suzhou City People’s Government and other government executives as well as tyre dealers from various cities in China. From Yokohama Rubber, president Tadanobu Nagumo, director and senior managing corporate officer Takashi Sugimoto who also serves as chairman, Yokohama Rubber (China) Co., Ltd. and other executives attended the ceremony. Around 170 attended in total, according to the company.

Commenting on the project, president Nagumo said: “The new plant will become the first TB-use steel radial tyre plant in China for Yokohama Rubber Group. At present, we rely on the import from Japan for TB-use steel radial tyres for sale in China. However, once operation starts at the new plant, our supply capacity will significantly expand. We want to further increase production capacity in response to sales growth in the future.”

Suzhou Yokohama Tire Co., Ltd was capitalized at $27.1 million by Yokohama Rubber (China) Co., Ltd in April 2006. Yokohama says it will invest a $81 million in the construction of the plant, which will “begin operation” in October 2007 with an annual production capacity of 350,000 tyres. The new plant will be Yokohama’s fourth truck and bus radial production plant, in addition to facilities in Japan, US and Thailand. It is also Yokohama’s second plant in China after its Hangzhou Yokohama Tire Co., Ltd., passenger car production factory, which began operation in May 2003.