ERJ staff report (LMH)
Komaki, Japan - Tokai Rubber Industries has set up a joint venture in Russia to make components such as high-pressure rubber hoses for construction machinery.
The new company, provisionally called Nikko TRI Eurasia llc, will be TRI's first venture in Russia. Marubeni-Itochu Steel Inc. of Tokyo will be the majority shareholder with 50 percent of the company. TRI owns 20 percent, while Kihara Mfg Co. Ltd of Joso, Japan will own 5 percent.
TRI said in a 7 Dec news release that the development of energy resources is â€œthe centre of industryâ€ in Russia and demand for construction machinery has grown alongside it. The new joint venture will supply high-pressure rubber hoses and steel pipes to the market.
The three companies have invested Yen 250 million (Euro 2.3 million) in the site at Tver, some 170 km northwest of Moscow. Start-up is planned for April 2013.