Yokohama Rubber More than Double Vietnam Tyre Capacity
Yokohama Rubber Co., Ltd., has announced that it will increase its bias tyre production capacity for motorcycles and light trucks in Vietnam by 2.5 times. For this, the company will begin constructing a new tyre plant in June of this year production set to start in June 2007. Yokohama Rubber plans to invest a total of 1 billion yen (7 million euros) in this construction programme.
In 1997, Yokohama Rubber established Yokohama Tyre Vietnam Company as a joint-venture company with Southern Rubber Industry Company (Casumina) of Ho Chi Minh City and Mitsubishi Corporation. Since 1998, the joint-venture company has been manufacturing bias tyres for motorcycles and light trucks and selling them mainly for sale in the domestic replacement tyre market. However, as tyre demand has expanded, the existing plant’s production capacity has become unable to fully meet it. An additional factor that motivated Yokohama Rubber to go with the construction of a new plant was the necessity of manufacturing industrial vehicle tires for the replacement market in Japan and mini spare tyres for Japanese car manufacturers.
The new tyre plant will be constructed in Binh Duong Province in the outskirts of Ho Chi Minh City as an integrated manufacturing plant encompassing from material mixing and building to curing. Its production capacity will be 3,100 tons a year on a new rubber consumption basis. Although its plant area is 30,000 square meters, Yokohama Rubber has acquired 60,000 square meters of land for expected future expansion. Yokohama Tyre Vietnam Inc., a wholly-owned new subsidiary of Yokohama Rubber is the constructor of the new plant. It plans to merge with Yokohama Tyre Vietnam Company in several years.