Toyo enters into railway components JV
Last year, sales of tyres accounted for just under three quarter of Toyo Tire & Rubber’s total net sales. The remainder came from a portfolio of other rubber and chemical products. Included within this non-tyre business is the manufacture of anti-vibration rubber components for railway vehicles; Toyo has now furthered its activities in this area by entering into a joint venture arrangement with Chinese firm Wuxi Meifeng Rubber Products Manufacturing Co., Ltd. On July 5 the two firms signed an agreement to form a new company, “Wuxi Toyo Meifeng Rubber Products Manufacturing Co., Ltd.” This new entity is to be based in Wuxi City, Jiangsu Province, China, and will manufacture and distribute air springs and anti-vibration rubber for railway vehicles. Toyo has invested 30,484 million yen (£234.6 million) in the venture, giving the company a 51 per cent shareholding.