business

Japan-based Toyo Tire & Rubber plans to invest 21b yen for capacity expansion in Malaysia

KUALA LUMPUR: Japan-based Toyo Tire & Rubber Co Ltdplans to invest 21b billion yen to expand its tire production capacity in Malaysia as the country acts as the hub for the global product supply.

The investment will be earmarked for the construction of a new building at its Malaysian tire plant in Perak.

Toyo Tires said the new building will have an annual production capacity equivalent to 4.8 million passenger vehicle tires.

“In the initial phase of this project, Toyo Tires will first install equipment to produce half of this volume, which is 2.4 million tires (converted for passenger vehicle tires).

Production is scheduled to start in October 2019,” it said.

Toyo Tires said it plans to increase its tire sales to 400 billion yen and the operating income to 56 billion yen in 2020, up 31.6 per cent and 23.3 per cent respectively, compared to the actual results in 2016.

“This expansion of production capacity is part of its plan to strengthen the company’s business foundation in order to maximise profits as stated in its tire business policy.

“It is intended to further solidify Toyo Tires’ sales of large-diameter tires for pickup trucks, SUVs, and CUVs, where TOYO TIRES already has a competitive advantage,” it said.

As part of its supply strategy, Toyo Tires said it is developing a manufacturing and product delivery structure that optimises its mix of global logistics and production capabilities, taking advantage of what each production base can offer.

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