Toyo outlines strategy to 2020

ERJ staff report (DS)

Tokyo -- Toyo Tires' website now reflects the company's previously-announced Vision 2020 philosophy. In May this year, Toyo announced its "Vision 2020" and "2011 Mid-Term Business Plan," based on the Corporate Mission Statement. "Vision 2020" is a long-term strategy for the next 10 years to realise the company's future by 2020, and the "2011 Mid-Term Business Plan" is a five-year specific management plan for Toyo's interim target by 2015. At the time the comapny did not release details of te strategies.

It is based around the new mission statement, “ For each of us to give our best where we work, so that our customers will

always have a better product at a better price, more today than yesterday." and the corporate philosophy, “A commitment to creating new value through innovation in advanced, proprietary technologies."

The long term aim is to have two premium brands: Nitto and Toyo, each of which is equally represented in Asia, Japan and North America. Europe appears in the plan as a centre for non-tyre automotive parts, but not for tyres. Toyo also intends to build a new business based around diverse technologies. In Europe that is traffic and transportation.

The vision for 2020 is to achieve sales of yen 600 billion (euro 5553 million) and a opertain margin of 10.0 percent. In 2010 the comapny reported sales of yen 294 billion with an operating margin of 4.1 percent.

In terms of tactical moves to achieve intermin targets by 2015, Toyo is aiming for speedy global growth.

The tyre business aims to establish distinctive brand strategies; to shift to growing markets and expand the Nitto brand globally. Toyo is the full-line brand, while Nitto becomes the specialist brand for enthusiasts. This brand currently generates 9 percent of sales, but is expected to rise to 15 percent by 2015.The Silverstone brand is aimed at value-conscious buyers.

One of the main themes is to improve tyre manufacturing capacity, especially in Asia, adding around 12.5 million units of capacity in Asia, which will bring Toyo's global capacity to 45 million tyres per year by 2015. This capacity wil serve growing markets around the world, boosting sales to yen 310 billion by 2015, from yen 216 billion in 2010. Yen 50 billion of this is expected to come from Asia.

Critically, the company aims to, "Develop the world's best embodiment of environmentally-conscious technology." This involves reducing tyre weight; improving computer modelling and use of more advanced materials.

In the diversified products business, Toyo aims to increase its role in automotive parts; expand the urethanes business in Asia; expand the rail air-springs business globally and develop more environmentally-conscious technologies.

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Presentation from Toyo (English language)

President's message from Toyo website