Japanese tire manufacturer Toyo Tires has announced that it will be ending production at its Silverstone Berhad (SSM) tire manufacturing subsidiary in Perak, Malaysia. The facility is currently used for manufacturing tires for OEMs, Toyo’s own branded tires, and also Silverstone-branded tires for aftermarket use in Malaysia.
The company states that due to the position of the plant in its global strategy, and in terms of overall production capacity, the closure of the facility is unavoidable and it will cease production in June 2021 once preparations have been completed.
Another manufacturing subsidiary, located in Perak, commonly known as the Toyo Tire Malaysia plant (TTM), will take on the production of certain Silverstone-branded products previously made at the Silverstone Berhad facility. Alongside this, the TTM will form a global hub, supplying tires to Southeast Asia, North America, Europe and Japan.
The move follows a tough financial year for the tire manufacturer. Toyo states that for the year ending December 31, 2020, the company suffered losses totaling ¥6,270m (US$59.1m). This figure includes an impairment loss of ¥5,110m (US$48.1m), and a loss of ¥1,159m (US$11m) due to the liquidation of subsidiaries and affiliates.