OSAKA, Japan (Jan. 28, 2010)—Toyo Tire & Rubber Co. Ltd. has picked Zhangjiagang City as the site for the Chinese tire factory it announced in August it intended to build.
The plant, under the name Toyo Tires Zhangjiagang Co. Ltd., is expected to come on stream by year-end 2011 with about 500 employees and initial capacity for 2 million passenger and light truck tires, Toyo said. The company put its investment for the plant at $105 million when plans were first disclosed last year.
Toyo previously produced tires in China in joint ventures with Taiwan's Cheng Shin Rubber Ind. Co. Ltd./Maxxis International, but it dissolved the ventures in August and shifted its relationship with Cheng Shin to a consignment manufacturing agreement.
That decision allows it to continue to supply customers until its own factory comes on stream, Toyo said at that time. Toyo cited its need “to respond to increasing tire demands in accordance with the rapid progress of motorization in the Chinese market” for its decision.