TOKYO—The Yokohama Rubber Co. Ltd. held a groundbreaking ceremony in June for its new marine products plant, located at the Kabil Integrated Industrial Estate near the east coast of Indonesia's Batam Island.
The company's new local subsidiary, PT Yokohama Industrial Products Manufacturing Indonesia, sponsored the ceremony.
Construction is scheduled to be completed in July 2015.
The company said that it is building the plant in response to growing global demand for marine products made by Yokohama Rubber, such as marine hoses and fenders used in the handling and transferring of crude oil at sea, as well as global demand for petroleum products.
Yokohama said Batam Island was selected as the site for the new plant because it is located just 12 miles from Singapore, Asia's largest hub port, providing access to international distribution routes. The company said its location will enhance cost competitiveness.
Yokohama Rubber currently produces its marine products in Japan. When finished, the new plant will provide the marine products group with a two plants, expanding capacity by 50 percent.