Toyo to Build New Asia Facility, Increase Capacity in North America
A new manufacturing facility in Asia and increased capacity in North America have been announced by Toyo Tire & Rubber in order to reinforce its tyre business’s global supply system. This measure is being undertaken as part of its Medium-Term Business Plan 2008, a three-year business plan that will be in operation through to the year ending March 31, 2011.
Toyo believes that simply boosting production at existing plants is not sufficient to meet anticipated growth in global demand. Therefore the company has drawn up a shortlist of potential locations for a new tyre production plant in Asia, which will serve as an export centre for the global market. This facility is scheduled to be ready during the 2010 fiscal year and will be built at a total investment of around 24 billion yen (£115.6 million). Planned production will mainly concentrate on passenger car tyres and by March 2012 annual output at the site is expected to reach 4 million units.
Plans for future business expansion in North America are behind the upcoming expansion of capacity in this region. Toyo Tire North America Manufacturing commenced full-scale production of passenger car and light truck tyres, using the company’s new Advanced Tire Operation Module (A.T.O.M.) engineering method, in March 2006 and began to gradually increase capacity from May 2007 onwards. This latest third phase of expansion will take place with an investment of around 28 billion yen (£134.8 million) and will increase annual output by 2.4 million units and 3.2 million units in fiscal years 2010 and 2011, respectively.