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Crisis in Japan: Tiremakers Update Production Status

March 18, 2011
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With information about the status of Japan-based tiremakers flowing slowly out of the stricken country, we continue to try to provide the latest news.

Yokohama
Yokohama Rubber Co. said plans for resuming production at plants stalled by the earthquake and tsunami are progressing. Production remains suspended at Yokohama’s facilities in Ibaraki.

Production has resumed at other Yokohama plants in Mishima, Hiratsuka, Hiratsuka-East, Hamatite, and Nagano plants.

Yokohama suspended operation at all of those plants immediately after the earthquake struck on Friday, March 11. The company conducted inspections to confirm the soundness and safety of equipment and systems at the plants on Sunday and Monday, March 13 and 14, and subsequently resumed production gradually.

Yokohama reports that capacity utilization at the plants remains below the level required to fulfill its annual production plan. Management is tentatively confident of restoring capacity utilization to that level, however, provided that the plants retain access to electric power and to raw materials.

Inspections at the Ibaraki Plant revealed some damage to the plant buildings and equipment. Yokohama has made the necessary repairs and is gradually resuming production at the plant while monitoring safety carefully.

Toyo
Toyo Tire & Rubber Co. said its Sendai plant remains closed, primarily due to a continuing power outage in that region. Sendai was hard hit by both the 9.0 magnitude earthquake and accompanying tsunami.

Toyo said it began test production at the plant, using available onsite electricity and steam, and "will begin partial production” next week. Toyo warned that even if fully operational, the Sendai plant still faces issues with shortages of oil, raw materials and other needed goods, and truck transportation is crippled in the region due to a lack of fuel and roads that remain blocked.
    
Bridgestone
Bridgestone Corp. reports that its Nasu factory, which produces passenger car and motorcycle tires, is still out of operation. The plant was initially scheduled to restart production on March 16, but some sparks and smoke were detected within the plant that day, necessitating a further delay in production commencing. All other plants have restarted production.

Cabot
Cabot Corp. reports the safety of all employees in Japan and the occurrence of only “minimal physical damage” at its facilities there. The company’s carbon black manufacturing facility in Chiba resumed operation after a short suspension after the earthquake, however Cabot states that “supply chain and infrastructure disruptions” are likely to impact its “ability to operate” over the coming weeks. The company’s Shimonoseki carbon black facility remains in regular production.

Kumho Makes Donation
Kumho Asiana Group, parent company of Kumho Tire USA, announced it would donate 60 million yen to aid Japan’s recovery from the earthquake and tsunami damages. The 60 million will be divided equally and given to the three areas in which the company’s Asiana Airlines operates its services, namely Miyaki, Ibaraki and Fukushima.

The South Korean company reports that executives and employees of Kumho Asiana Group affiliates voluntarily raised funds to help the Japanese “overcome despair and accelerate the country’s recovery,” and these funds were supplemented by the company.

Other Kumho Asiana Group efforts to help the victims of the Japanese disaster include Asiana Airlines’ donation of emergency aid kits, including 1,500 blankets for in-flight use, noodles and mineral water to Japan via its aircraft on March 14.