Toyo to Build Tyre Plant

Toyo Tire & Rubber Co. has announced it will invest $9.8 million to establish a wholly-owned subsidiary company at Zhangjiagang City, Jiangsu Province, China, to manufacture passenger and light truck tyres.

On 27 August 2009 the tyremaker said it was planning to build a plant in China, and this new subsidiary is expected to meet the growing demand for tyres generated by the rapid growth in automobile use in China. Jiangsu Province is said to be the ideal location to establish the new factory because it already has the necessary infrastructure, work force, and logistical support.

Toyo Tires Zhangjiagang Co., Ltd., as the subsidiary company will be known, will be established in April, with operations commencing by the end of 2011. Initial production capacity during the first phase will be 2 million units of passenger and light truck tyres. The factory will employ about 500 people, according to Toyo.