Yokohama Rubber has established a Singapore subsidiary, Yokohama Rubber Singapore, which is scheduled to begin full operations by the end of May.
Yokohama Rubber has had a branch office in Singapore engaged in the procurement of natural rubber from Southeast Asian nations. The decision to establish a local subsidiary is in line with the Yokohama Group’s plan to raise the efficiency of its raw material procurement function on a global basis.
The new subsidiary, which is capitalized at US$20m (all equity capital from Yokohama Rubber), will initially be engaged in procuring natural rubber for Yokohama Rubber’s Japan plants in fiscal 2015, and is scheduled to expand its natural rubber procurement business to also cover the needs of the Yokohama Group’s overseas plants from fiscal 2016. In the future, operations will be expanded to include the procurement of raw materials other than natural rubber.
The new subsidiary also plans to strengthen raw material inventory controls as part of its efforts to establish a more stable and efficient global procurement structure. The existing Singapore office will continue operating until it completes the handover of its functions to the new subsidiary.
May 20, 2015