From Tire Review
Toyo Tire & Rubber Co. plans to acquire a 75 percent equity interest in China-based tiremaker Shandong Silverstone Luhe Rubber & Tyre Co.
The deal is expected to close in June, Toyo said, and the tiremaker intends to integrate production of Toyo brand tires there “as soon as practicable.”
“The company has been working to improve its corporate value through a long-term global growth strategy,” Toyo said in a statement. “Through this acquisition, the company will now be in a position to supply truck and bus tires from SSLRT, and passenger car tires from the company’s new factory,” a greenfield plant under construction in Jiangsu, China.
As for the reason for the purchase, Toyo said, “The goal is to establish an optimal tire supply system, not only for China, but for all of our overseas markets.”
The plant, which opened in December 2004, currently has the capacity for 400,000 units per year.
This is the second capacity purchase Toyo has made in the past nine months. Last fall, Toyo acquired Malaysia-based tire manufacturer Silverstone Berhad (no relation to the Chinese company). Toyo said that purchase put it in position “to make a full-scale entry into the fast-growing Southeast Asia market.”
