Toyo to acquire majority stake in Chinese truck tyre maker

ERJ staff report (DS)

Osaka, Japan -- Toyo Tire & Rubber is to acquire a 75 percent equity interest in China-based tyre manufacturer, Shandong Silverstone Luhe Rubber & Tyre Co., Ltd. (“SSLRT”).SSLRT has annual capacity for around 400 000 truck and bus tyres at a single plant in Luzhou Zhucheng River Industrial Park, Shandong Province, China and employs about 500. The company is currently building a new car tyre plant.

Following the acquisition,Toyo will be able to supply truck and bus tyres from SSLRT, and passenger car tyres from the Company's new factory which is under construction in Jiangsu province (Toyo Tires Zhangjiagang Co., Ltd.) This will in turn enable the Company to meet strong demand in rapidly expanding markets in China and elsewhere.

The Company plans to commence production of Toyo-brand products at this new subsidiary as soon as practicable. The goal is to establish an optimal tyre supply system, not only for China, but for all overseas markets.

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Press release from Toyo