Yokohama to produce high-pressure hydraulic hoses in China

ERJ staff report (LMH)

Tokyo -- Yokohama Rubber Co. Ltd is to construct a specialised high-pressure hydraulic hose plant in the economic development zone in Hangzhou City, China, the company said in a 20 May announcement.

The plant will manufacture hydraulic hoses ranging from middle pressure to ultrahigh pressure at its production line integrating everything from rubber mixing to vulcanisation.

Construction of the plant will start at the end of this year to begin operation at a monthly production volume of 400 000 metres in January 2013, Yokohama said in the statement. The Japanese company will invest a total of 3 billion yen (euro 25.8 million) for the plant.

Chinese demand for construction machinery including excavators and cranes has sharply recovered after a temporary drop caused by the 2009 Lehman shock, Yokohama said, adding that the vigorous demand is expected to continue throughout 2011 and after. In addition to the increasing OEM demand from Japanese and Chinese makers, sales in the replacement market are also growing at a rapid pace.

Currently, Yokohama has been meeting the demand through export from Japan and Yokohama Hoses & Coupling (Hangzhou) Co., Ltd., established to assemble hoses and metal parts in Hangzhou.

Yokohama said it has decided to begin local production as a necessary building block for its growing Chinese business in the future. The company set up a product sales company in May this year in Shanghai to fully initiate creation of a nation-wide sales network in China.

The new plant is constructed as the manufacturing base of Yokohama Hoses & Coupling (Hangzhou) Co. Ltd and its cost of investment is paid by Yokohama Rubber (China) Co. Ltd, a holding company to overall control Yokohama Rubber's subsidiaries in China.

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Press release from Yokohama