Yokohama to focus on mini-spares in Vietnam after JV wind-up
At present Yokohama Rubber is in the process of winding up the joint venture it operated in Vietnam for the last 15 years and intends to integrate this into its local subsidiary. The company announced on 4 September that the three joint investors in Yokohama Tire Vietnam Company (YTVC) – Yokohama Rubber, Southern Rubber Industry Company (Casumina), and Mitsubishi Corporation – began preparing to end the joint venture company in August as part of what Yokohama Rubber calls the “enhancement” of its tyre manufacturing and marketing operation in Vietnam.
YTVC will be integrated into Yokohama Tire Vietnam Inc., a 100 per cent-owned subsidiary of Vietnam Rubber. This move is described by Yokohama Rubber as an “operational unification” that “further enhances its tyre manufacturing and marketing operation in Vietnam, upgrading its presence in the local market.” At the same time, Yokohama Rubber shares that it plans to “streamline and strengthen” Yokohama Tire Vietnam Inc. as a base for supplying mini-spare tyres worldwide.
The joint-venture company was founded in November 1997 and manufactures cross-ply tyres for motorcycles and light commercial vehicles. The Japanese tyre maker’s 100 per cent-owned subsidiary, Yokohama Tire Vietnam Inc., was established in June 2006 in order to meet growing demand for tyres in Vietnam. The subsidiary constructed and operated an integrated plant near Ho Chi Minh City, and since February 2008 the company has manufactured and marketed cross-ply motorcycle, light commercial and industrial vehicle tyres, as well as mini-spare tyres.
Although Yokohama is parting ways with Casumina and Mitsubishi Corporation in relation to this joint venture project, the company says it plans to keep a “conventional good relationship” with both firms.