By Oliver Hall
Yokohama plans to boost annual passenger tyres production at its plant in China by double.
The Tokyo-based company – the seventh largest tyres manufacturer in the world – is set to increase production at the Hangzhou factory from three million units to 5.1 million units.
According to a statement on its website, Yokohama plans to inject seven billion yen into the Phase IV expansion programme.
It added: “Production is scheduled to begin in January 2011 using the expanded facility.”
In July, the Japanese company had announced plans to increase annual passenger tyre production at the seven-year-old factory by 1.1 million units.
However, Yokohama decided to boost capacity at the plant even more due to the continued growth of new car production in China.
The statement added: “China is expected to become the world’s largest automotive manufacturing country by making more than 10 million cars in continued vigorous trends toward production and sales growths.
“Yokohama Rubber has promptly responded to these moves by making a decision to give an additional production capacity to the Chinese affiliate.”