Toyo to acquire majority share in Silverstone manufacturer

At present Toyo Tire & Rubber is in negotiations to acquire a 75 per cent interest in China based tyre manufacturer Shandong Silverstone Luhe Rubber & Tyre Co., Ltd. The Japanese company’s Board of Directors signed an acquisition agreement on April 12 and expects to close the acquisition deal in early June 2011. Toyo plans to begin producing Toyo brand tyres at the new subsidiary “as soon as practicable” and aims to “establish an optimal tyre supply system” both in China and in all its other overseas markets.

This acquisition fits in with the company’s long-term global growth strategy, Toyo notes. Through this acquisition, the tyre maker will now be in a position to supply truck and bus tyres from Shandong Silverstone alongside passenger car tyres from its new Toyo Tires Zhangjiagang Co., Ltd. factory currently under construction in China’s Jiangsu province. This will in turn enable Toyo to meet strong demand in rapidly expanding markets in China and elsewhere, the company adds.

Shandong Silverstone was established in late 2004 as a joint venture between the Lion Group of companies in Malaysia and China’s Shandong Luhe Group and the manufacturer of the Silverstone tyre brand now has an annual manufacturing capacity of 400,000 units. Currently the 100 per cent of outstanding shares in the Chinese manufacturer are owned by Lion Rubber Industries SDN. BHD.