Yokohama, Shandong Xingda sign OTR off-take agreement

On 2 August Yokohama Rubber announced its entry into an off-take agreement with Shandong Xingda Tyre Co., Ltd., a manufacturer of off-the-road tyres for construction and mining vehicles. Under the terms of this basic agreement, Yokohama Rubber will provide Shandong Xingda Tyre with technical support regarding OTR radial tyres and in return will off-take a fixed quantity of OTR tyres manufactured by Shandong Xingda Tyre.

Technical support is planned to begin during or after the summer of 2012, and the off-take is expected to begin in the latter half of 2013. Tyres supplied to Yokohama under the off-take arrangement will be 25-inch or larger radials. Details regarding quantities to be supplied or any time period involved have not yet been finalised. Yokohama rubber will market the Shandong Xingda-manufactured tyres globally under the Yokohama brand name.

Yokohama Rubber says it intends to develop a 49-inch OTR radial, and the Japanese tyre maker believes this new partnership with Shandong Xingda Tyre will be of benefit as it will enable Yokohama to increase supply in a short space of time without the need for capital investment. For Shandong Xingda Tyre, a company founded in 2005 and specialised in the OTR sector, the partnership with Yokohama Rubber will contribute to improvements in quality and operative stability. The company operates a large factory in Dongying, Shandong and produces and sells its products mainly for export.