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October 08, 2008 02:00 AM

Yokohama considers delay in Chinese expansion

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    TOKYO (Oct. 8. 2008) — Yokohama Rubber Co. Ltd. has confirmed it is considering delaying the fourth phase of an expansion of a passenger tire plant in Hangzhou, China.

    A Yokohama spokesman said the company probably will hold off on the project and may reduce its involvement in low-margin original equipment contracts to improve profitability.

    The spokesman said Yokohama will make the planned expansion at the Hangzhou Yokohama Tire Co. Ltd. plant but might delay that investment “by a few months.”

    The planned expansion would add capacity for 800,000 to 900,000 units per year at the five-year-old passenger tire plant, where capacity is listed as 1.9 million units a year.

    Yokohama last disclosed plans to expand that plant in 2007, budgeting $25.4 million through 2008 to double capacity there.

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