MOSCOW -- Yokohama Rubber Co. has partnered with Itochu Corp. to create a tire manufacturing and sales company in Russia.

The new company – Yokohama RPZ LLC – is capitalized at 3.76 billion ruble (approximately 11.7 billion yen), 80 percent of which will be held by Yokohama and the remainder by Itochu.

The company will build a new tire plant in Lipetsk, located about 350 miles south of Moscow, that will have an initial capacity of 1.4 million passenger tires per year. Construction is slated to start in March 2010.

With the joint venture set, Yokohama and Itochu also agreed to increase the latter's investment ratio in Yokohama Russia LLC, a tire sales company jointly established by the two companies in April 2005 in Moscow, from 14.9 percent to 20 percent. (Tire Review/Akron)