Toyo closes loss-making Silverstone tyre plant in Malaysia

Toyo Tire Corporation is closing its loss-making wholly-owned Silverstone Berhad Malaysian tyre manufacturing subsidiary in June 2021. Established on 12 July 1986 and purchased by Toyo in 2011, Silverstone currently manufactures tyres for (primarily Malaysian) new vehicles and Silverstone branded tyres for the aftermarket as well as certain Toyo branded tyres. The dissolution of the Silverstone subsidiary (Silverstone Berhad) will commence by 31 December 2021.

The Toyo Group also operates another manufacturing subsidiary in Malaysia, Toyo Tire Malaysia Sdn Bhd (TTM), which is also 100 per cent subsidiary of Toyo Tire. This operation produces Toyo branded tyres. According to the Japanese tyremaker, TTM functions as a global hub supplying tyres to Southeast Asia and other global markets including: North America, Europe, and Japan. Production of certain Silverstone brand products previously manufactured at the Silverstone factory will be transferred to TTM, and production and supply will continue.

Toyo has budgeted 6,270 million yen (US$59.5 million; 49.06 million euros; £42.8 million) in its year-ended 31 December 2020 consolidated results in association with the Silverstone closure and dissolution. Silverstone reported losses of 13.346 million Malaysian ringgits($3.3 million; 2.727 million euros; £2.380 million) in 2018. Losses grew to 155.215 million ringgits ($38.471 million; 31.722 million euros; £27.688 million) in 2019, but were limited to 52.196 million ringgits ($12.937 million; 10.666 million euros; £9.311 million) in 2020.