Toyo Tire & Rubber to manufacture tires single-handedly in China+

OSAKA, Aug. 27 Kyodo -
Toyo Tire & Rubber Co. said Thursday it will manufacture automobile tires
single-handedly in China at a new plant in its coastal area by disbanding the
existing joint venture in the province of Jiangsu.

Toyo Tire will seek to start production at the 10 billion yen plant with an
initial annual output capacity of 2 million units by the end of 2011, the
company said.
The company said it is now scrutinizing several candidate locations scattered
across the Chinese coastal area in determining the site of the envisioned
plant.
Toyo Tire, which has curbed capital outlays in North America and Asia in view
of the global financial crisis since last fall, now wants to make China its
second-biggest revenue source after North America due to growing auto sales
there, company officials said.
It is keen to start selling its products to automakers operating in China down
the track and intends to expand production in stages.
The company said it will dissolve its Jiangsu-based joint tire-making venture
it had set up in 1995 with a Chinese company. Toyo Tire has so far owned 22.4
percent of the venture.
From now on, Toyo Tire will entrust the Chinese company with manufacturing some
of its tires, it added.
==Kyodo