Yokohama sets up auto parts JV with Toyota in south China

Tokyo - The Yokohama Rubber Co., Ltd., has announced a new company, Yamasei Automotive (Foshan) Co., Ltd., to produce automotive parts, including power steering hose, in South China, jointly with Toyoda Machine Works, Ltd., and Yamasei Kogyo Co., Ltd.

The new joint venture company will supply power steering piping to Toyoda-Koki Automotive (Foshan) Co., Ltd., which Toyoda Machine Works established in December 2004 to produce and sell automotive power steering systems. The joint venture will start operation in December 2005. It is expected to employ 19 and is capitalised at ¥70 million (Euro 500 000), split 40:40:20 between the three partners. Yokohama takes the 20 percent stake.

In a statement, the company said, "Now that the new joint venture company has been established, it, together with Toyoda Machine Works, with a reputation for high-quality automotive power steering systems, and Yamasei Kogyo, which cooperates with Toyoda Machine Works in producing power steering piping in Japan, Thailand and Taiwan, will be fully prepared to supply automotive parts to Japanese automobile manufacturers in China starting in April 2006. The new company, in cooperation with Toyoda-Koki Automotive (Foshan), will also be able to meet the increasing demand for automotive parts in South China."