Toyo Tire & Rubber Co., Ltd. Is gearing up to expand its tyre production facilities in the US and Malaysia in a bid for continued growth beyond 2020.
The North American facility is located in the state of Georgia and will cost approximately 14 billion Yen to expand. The expansion is in line with the goal by Toyo Tires to improve product competitiveness and sales in the North American market per its new medium-term management plan, “Mid-term ’17”.
The new building will have an annual production capacity equivalent to 2.4 million passenger vehicle tyres. In the initial phase of this project, Toyo Tires will first install equipment to produce half of this volume, which is 1.2 million tyres annually (converted for passenger vehicle tyres). Production is scheduled to start in April 2019.
Meanwhile, the Malaysian facility is located in the state of Perak and its expansion will cost approximately 21.0 billion Yen.
The new building will have an annual production capacity equivalent to 4.8 million passenger vehicle tyres. In the initial phase of this project, Toyo Tires will first install equipment to produce half of this volume, which is 2.4 million tyres (converted for passenger vehicle tyres). Production is scheduled to start in October 2019.
Possible Construction of New Production Bases
Toyo Tires foresees continued growth beyond 2020 and is considering adding new production bases to position itself in the global market in its “Mid-term ’17” business plan. It will continue to evaluate various opportunities for adding new production bases, concurrently with the expansion of capacity at its current production plants.