In its 2016 annual report, Toyo Tire & Rubber Co. Ltd. highlighted the success of its business strategy in the U.S. and its North American tire business as the main driving force of much of the company’s income.
Toyo Tire President Takashi Shimizu said in his message in the annual report that that more than 90% of the company’s operating income is derived from selling tires, which its North American market drives.
Shimizu said the company has seen a strong demand for pickup trucks, SUVs and CUVs which means further demand for replacement tires. He said Toyo hopes to respond to that demand with its plans to start construction on a new plant in February, which is projected to begin production in April 2019.
“By placing roots in the market in this way and improving our business value, we will further reinforce our business base within the North American market,” Shimizu said.
Other goals listed in Shimizu’s remarks included:
- Malaysian plant: Construction is slated to start on the company’s Malaysian plant in August 2018 with production set to rev up in October 2019. “My idea is to have ‘a supply base that makes it possible for us to produce various products for the global market,’” Shimizu said.
- To better understand and study the future of the automotive technology landscape, Toyo plans to establish a research and development base in Europe to “enhance our current technical and marketing functions,” Shimizu said.
- Shimizu also emphasized that the company plans to optimize the particular characteristics of each plant to develop them as global supply bases.
