Yokohama, Hangzhou plan Chinese JV

TOKYO (Nov. 5)—Yokohama Rubber Co. Ltd. is planning a $30 million radial passenger tire joint venture in China with Hangzhou Rubber (Group) Co., with a start-up capacity of 750,000 tires a year starting in April 2003. Yokohama said Nov. 2 it had obtained permission from the Chinese government to set up the venture, to be called Hangzhou Yokohama Tire Co. Ltd. The venture will employ a "small-lot production system" developed by Yokohama. Sales operations are due to start in January 2002, Yokohama said. Annual capacity will be doubled by 2006 to 1.5 million units, which would require an additional investment of $30 million, the reports quote Yokohama as saying. Yokohama's YHI Holdings Pte. Ltd. subsidiary in Singapore will be the joint venture partner with Hangzhou Rubber. Yokohama will control 45 percent of the new company, YHI 5 percent, and Hangzhou Rubber 50 percent, with Yokohama having management control, the parties said.