Yokohama plans huge boost to cross-ply capacity in Vietnam

Tokyo - The Yokohama Rubber Co., Ltd.is planning a new factory to boost capacity for cross-ply tyres in Vietnam. The new factory will require an investment of ¥1000 million (€7 million) and employ 280 people.

The company said the new plant will increase its Vietnamese capacity by 2.5 times. The plant in Binh Duong Province is scheduled to be on stream in June 2007 and be capable of processing 3100 tonnes of rubber annually. Yokohama did not give a capacity figure in terms of units of production.

Yokohama's existing factory makes tyres for two-wheelers and for light trucks for the domestic market, all in cross-ply constructions. The new factory will have the same product range, and will increase total capacity in Vietnam by a factor of 2.5.

Yokohama added another reason for the new investment: "An additional factor that motivated Yokohama Rubber to go with the construction of a new plant was the necessity of manufacturing industrial vehicle tyres for the replacement market in Japan and mini spare tyres for Japanese car manufacturers.

The new tire plant will be constructed in Binh Duong Province in the outskirts of Ho Chi Minh City as an integrated manufacturing plant encompassing from material mixing and building to curing. Although its plant area is 30 000 square meters, Yokohama Rubber has acquired 60 000 square meters of land for expected future expansion.

Yokohama Tyre Vietnam Inc., a wholly-owned new subsidiary of Yokohama Rubber is the constructor of the new plant. It plans to merge with Yokohama Tyre Vietnam Company in several years.

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Press releasefrom Yokohama