TOKYO (March 18)—Yokohama Rubber Co. Ltd. will build a plant in Hangzhou City, China, this year for its Hamatite automotive window sealants.
Yokohama will spend $1.5 million to build the factory on a site adjoining its Hangzhou Yokohama Tire Co. Ltd. joint venture tire operation. Phase I start-up capacity will be 1,000 metric tons per year. The company has budgeted $2.2 million more for a Phase II doubling of capacity within three years.
The facility, to be operated by Yokohama Hamatite (Hangzhou) Co. Ltd., will be the firm's fourth for the Hamatite sealing product line, Yokohama said. The others are in Japan, Thailand and the U.S.
Up to now, Yokohama relied on its export from Japan to supply car assembly operations in China.