Toyo Tire & Rubber Co. has obtained local government authorization for its wholly owned subsidiary in Zhangjiagang City, China, to proceed with manufacturing passenger and light truck tires.
The company announced its decision to establish Toyo Tires Zhangjiagang Co., Ltd., in January. Operations are expected to commence by the end of 2011. Initial production capacity during the first phase will be 2 million passenger and light truck tires a year.
And all this comes by virtue of $98 million of investment (including paid-in capital of $50 million) from Toyo. According to the company, the new manufacturing facility is expected to meet the growing demand for tires generated by the rapid growth in automobile use in China. (Tyres & Accessories)