Yokohama confirms plan to delay Chinese tyre plant

ERJ staff report (DS)

Tokyo -- Yokohama Rubber Co has confirmed that it is likely to delay the fourth phase of an expansion of a car tyre factory in China.

Yesterday Reuters published an interview (see link below) with Tadanobu Nagumo, president of Yokohama, in which they said YRC is likely to delay the expansion, and may also reduce its OE involvement in low-margin contracts, in a bid to improve profitability.

A Yokohama spokesman confirmed the details in the Reuters story and added that YRC will make the planned expansion at its Hangzhou, China plant, but might delay that investment "by a few months." The planned expansion would add capacity for a further 800 000 to 900 000 units per year at the passenger car tyre factory.

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Yokohama Rubber may delay China expansionReuters (Japan)