OSAKA, Japan (Aug. 4, 2011)—Toyo Tire & Rubber Co. Ltd. said it will spend $260 million within four years to build a passenger and light truck tire plant in Perak, Malaysia.
The new plant will be located next to the Silverstone Bhd. factory it acquired earlier this year, and start up by April 2013, Toyo said. The facility will have the capacity to produce 10 million units annually, and will support Toyo's plan to achieve global supply of 45 million tires a year by 2015.
The Japanese company said production at the site will start at about 2.5 million units a year in the first few years, double to 5 million units a year by 2016 and double again as demand requires.
Production initially will be targeted at Malaysia, the neighboring countries of the Association of South East Asian Nations countries and other regions, Toyo said. Toyo has established Toyo Tyre Manufacturing (Malaysia) Sdn. Bhd. to oversee the plant. Kazuyuki Ito, a Toyo corporate officer, will head the new wholly owned subsidiary.
By building the plant next to the existing Silverstone factory, Toyo said it expects to have an efficient and effective operation because of synergy between the two plants. The company has acquired 120 acres of land in Perak for the project.
Employment at the operation will rise to about 800 by 2015, Toyo said.
The plant will be Toyo's eighth tire factory when it comes on stream. Toyo also is building a $105 million car and light truck tire plant in Zhangjiang City, China, that should be on stream by early 2012.
Silverstone's 22-year-old plant in Perak makes car, light truck, medium truck, farm and industrial tires. Capacity is listed at more than 2.6 million units a year, with 650 workers.