Tokyo – Yokohama Rubber Co. Ltd (YRC) has reached an agreement to buy Japanese industrial tire-maker, Aichi Tire Industry Co. Ltd.
Headquartered in Komaki, Aichi, Aichi Tire manufactures tires for industrial machinery, including forklifts, and Yokohama expects the acquisition to strengthen its position in that product sector.
The acquisition is expected to be finalised by March.
Aichi Tire’s products include solid tires and press-on tires. The company supplies the tires to mainly Japanese-based industrial machinery manufacturers.
Established in July 1942, Aichi Tire has two production plans in Komaki and Kasugai, Aichi, Japan. Last year, the company's sales stood at ¥7.4 billion (€60 million) and an operating income of ¥590 million.
According to Yokohama, the expansion of business in commercial tires is part of phase 4 of the group’s medium-term management plan, Grand Design 100.
The strategy also included the opening of the Mississippi plant for producing truck and bus tires in October 2015 and acquiring the Amsterdam-based manufacturer of off-highway tires, Alliance Tire Group BV, in July 2016.