Japan's Yokohama Rubber to Produce Tires in ChinaJapan's second-largest tire maker Yokohama Rubber Co. on Friday said it will set up a joint company in China to produce and sell car tires.The joint company, tentatively called Hangzhou Yokohama Tire Co., will be located in the Chinese city of Hangzhou, Yokohama Rubber said, adding that it has obtained approval from the Chinese government. The new company will have an initial capital of 12 million U.S. dollars, with Yokohama investing 45 percent, 50 percent by Chinese tire maker Hangzhou Rubber (Group) Co. and 5 percent from YHI Holdings Pte., a Singapore-based sales arm of Yokohama Rubber, Yokohama Rubber said. The new company will start manufacturing radial tires in May 2003 with a production capacity of 750,000 units a year, Yokohama Rubber said, adding that annual production will expand to 1.5 million tires depending on market developments. Total investment in the project is estimated at 60 million dollars, the Japanese tire maker said. Demand for radial tires in China is expected to grow robustly, it added. |
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