Tokyo—Yokohama Rubber Co. has dissolved its Italian-based marine hose company Yokohama Industrial Products Italy Srl, the Japanese group has announced.
Fixed assets of the Ortona, Chieti-based subsidiary were sold to a third-party purchaser last month, said Yokohama, adding that it had reached an “amicable severance arrangement” with employees.
“Recently, demand for marine hoses has slumped… and escalating competition has obliged Yokohama to review its production capabilities and capacity to remain cost competitive,” its statement explained.
Yokohama said it will now concentrate production capacity for marine hoses at its operations in Japan and Indonesia.
The group acquired Yokohama Industrial Products Italy from Parker-Hannifin Corp. in 2014 to complement the group’s Japan-based production capacity for marine hoses.
The subsequent addition of a production facility in Indonesia, reinforced the company’s position in the global marine hoses market.