Yokohama Rubber Co, Japan's third-biggest tire maker, said it plans to produce tires for passenger cars in Russia and Brazil from 2010 to meet rising demand in these fast-growing economies.
It will be the first Japanese tire maker to start local production in Russia. Bigger rival Bridgestone Corp already has tire factories in Brazil.
Yokohama Rubber currently ships tires to these countries from factories in Japan and the Philippines. But it wants to build local plants due to the strong business prospects in Russia and South America and also to avoid high tariffs on imported tires, a company spokesman said.
"It makes more sense to produce tires there and sell them directly in the region," the spokesman said.
"We'll keep shipping value-added products from Japan... (The plants) will start small and expand if and when sales increase," the spokesman added.
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It will be the first Japanese tire maker to start local production in Russia. Bigger rival Bridgestone Corp already has tire factories in Brazil.
Yokohama Rubber currently ships tires to these countries from factories in Japan and the Philippines. But it wants to build local plants due to the strong business prospects in Russia and South America and also to avoid high tariffs on imported tires, a company spokesman said.
"It makes more sense to produce tires there and sell them directly in the region," the spokesman said.
"We'll keep shipping value-added products from Japan... (The plants) will start small and expand if and when sales increase," the spokesman added.
Read the full article>>
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