Toyo Tire is to expand production capacity at its factories in Georgia in the USA and Perak in Malaysia. This will involve the installation of new equipment and construction of some new buildings, too.
The plans have been made off the back of two of the company’s current strategic business goals which are to increase Toyo’s presence in the North American market and refine its product mix in accordance with market trends, advancing development and technical capabilities.
As part of its supply strategy, Toyo is in the process of establishing a manufacturing and product delivery structure that best utilizes global logistics and production capabilities, taking advantage of what each production base can offer.
Toyo is to invest approximately ¥14bn (US$124m) to construct a new building at the US facility, which will have an annual production capacity of 2.4 million passenger vehicle tires. In the initial phase of this project, Toyo Tires will first install equipment to produce half of this volume. Production is scheduled to start in April 2019.
Expanding capacity at the Malaysian tire plant, the company is to invest around ¥21bn (US$186m) in the building of a new facility, where approximately 4.8 million passenger vehicle tires will be manufactured. In the initial phase, half that capacity will be attained with new equipment. Aims are to begin production in October 2019.
More generally, Toyo plans to increase its worldwide tire sales to ¥400bn (US$3.5bn) and operating income to ¥56bn (US$496.3m) in 2020, up 31.6% and 23.3% respectively, compared to the actual results in 2016.
October 3, 2017