HANGZHOU, China (Nov. 5, 2009)—Yokohama Rubber Co. Ltd. is doubling the scope of an expansion project at its Hangzhou Yokohama Tire Co. Ltd. plant in Hangzhou announced earlier this year, pushing the plant's annual capacity to 5.1 million passenger tires by early 2011.
Yokohama is boosting the size of the investment in the expansion 75 percent to $78 million in response to the continued growth of China's vehicle industry, which is forecast to build 10 million units this year to become the world's No. 1 producer.
Yokohama opened the Hangzhou plant in May 2003 and has expanded it twice since. The capacity includes passenger, recreational-vehicle and light-truck tires for consumers and auto makers. Yokohama did not comment on the expansion's effect on employment, which stands at 859.
Yokohama announced in August plans to add 1.1 million units of annual capacity.