TOKYO (Jan. 16, 2009)—Yokohama Rubber Co. Ltd. has settled on an economic zone in western Russia as the site for an estimated $1.2 billion passenger tire plant it intends to have operating by 2011.
Formal contracts haven't been completed, the company said.
Yokohama, which has had a sales subsidiary in Russia since 2005, has selected a 215-acre plot in the Lipetsk Economic Zone for the plant. The company plans to build the plant with a capacity of 1.4 million units a year.
Lipetsk is about 300 miles southeast of Moscow and close to Voronezh, where local producers Voronezh Tire and Amtel-Vredestein operate tire factories.
Yokohama is represented in Russia via Yokohama Russia L.L.C. in Moscow. It opened in 2005 with the aim of increasing sales of high-performance passenger tires and increasing the company's sales network.