Toyo Tire & Rubber Co. Ltd. will invest 20 billion yen ($259 million) to construct a new tire plant in Perak, Malaysia. The company says it plans to strengthen Toyo Tires’ production-supply capability for passenger car and light truck tires in the Asia region.
In its 2011 mid-term business plan, Toyo Tires has set this year’s net sales targets at 310 billion yen ($4.02 billion), and operating income at 24 billion yen ($311 million) in its tire business. To that end, Toyo Tires is establishing a three-point global production-supply structure based in Asia, Japan and North America.
The company says its goal is to achieve a worldwide supply of 45 million tires in 2015. That would be an increase of 55% from 2010.
The site of the new factory is in Perak, Malaysia, where it will operate alongside Toyo’s Silverstone Berhad plant, part of the Toyo Tires Group of companies. Production will start at 2.5 million passenger car and light truck tires annually.
The plant's output will be for Malaysia, the neighboring ASEAN countries and other regions. Toyo plans to achieve the annual production structure for 5 million tires by 2015.
