Toyo signs deal to develop Nitto brand in China
The five-year plan for Toyo Tire & Rubber’s Nitto brand leading up to 2015 is to increase sales volume some 250 per cent from its current level of 6.75 million tyres per annum, an increase that will see the Nitto brand’s proportion of total Toyo sales grow from nine to 15 per cent. To achieve this, the tyre maker intends to boost sales in its established North American market plus introduce the brand into other regions, including Asia, South America and Oceania.
An important part of Toyo’s growth strategy involves building up the Nitto brand in China; on October 17, Toyo and YHI Corporation (Shanghai), a subsidiary of Singapore-based YHI International Limited, signed a contract covering a sales concept for Nitto brand passenger car tyres in the Chinese market. Under the partnership between the two companies, YHI will develop Nitto sales in China using its established network.
In its 2011 Mid-Term Plan, Toyo set a tyre business sales target of 310 billion yen (£2.45 billion at current exchange rates) in 2015, a figure that represents growth of 143.1 per cent compared with 2010, and a 269.6 per cent increase in operating profit to 24 billion yen (£196.36 million). With this goal in mind, Toyo says it is “proactively working to build a global manufacture-and-supply structure,” an effort that includes its acquisition Malaysia’s Silverstone Berhad and recent local government approval for the production of tyres in China. Toyo is also proceeding with plans to open new facilities in both countries.
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