Japan’s Yokohama Rubber Co has announced that it has made Shandong Yokohama Rubber Industrial Products Co (YRSC), a consolidated subsidiary engaged in the production and sales of conveyor belts, a wholly owned subsidiary by acquiring and adding to its 77.02% equity stake in the company the remaining 22.98% of shares owned by another company.
The deal was consummated by Yokohama Rubber (China) Co, Yokohama Rubber Group’s business headquarters in China. The necessary procedures were completed on July 18.
YRSC was established in January 2006 as a joint venture between Yokohama Rubber and Shandong Yuema Rubber Co, a Chinese maker of conveyor belts. It has since been selling high-quality conveyor belts mainly to customers in Asia, including Japan.
Making YRSC a wholly owned subsidiary will contribute to the further stabilization of its earnings, one of the themes for Yokohama Rubber’s conveyor belt business under Yokohama Transformation 2026 (YX2026), the group’s medium-term management plan for the three years from 2024 to 2026.
Yokohama Rubber’s conveyor belt business has established a solid market position in Japan and is now aiming to expand sales in other Asian markets, including China, India, Indonesia, and other countries, as an essential strategy for further growth of the business.
Turning YRSC, one of the business’s most important bases, into a wholly owned subsidiary will speed up decision-making, strengthen the administration of group management, and enable more efficient use of management resources. It also will strengthen Yokohama Rubber’s global market position in conveyor belts by facilitating the creation of a sales and technical support system that can respond quickly to customer needs and by maximizing production capacity to ensure the stable supply of conveyor belts.