ITOCHU Launches Tire Manufacturing and Sales Business in Russia with Yokohama Rubber
August 21, 2009
ITOCHU Corporation (ITOCHU) has reached an agreement with Yokohama Rubber Co., Ltd. (Yokohama Rubber) to set up a joint venture to manufacture and sell tires in Russia. The agreement was executed in August.
Profile of New Company
|Company Name||YOKOHAMA R.P.Z. L.L.C.|
|Location||Special Economic Zone, Lipetsk Oblast, Russian Federation|
|Business Description||Manufacture and sale of tires|
|Capital||3.76 billion rubles (approx. 11.7 billion yen)|
|Ownership||Yokohama Rubber (80%), ITOCHU (20%)|
The new company will be building a manufacturing plant with an annual production capacity of 1.4 million tires. Its application for entry into the special economic zone was accepted in December 2008.
The investment in plant construction will be 4.8 billion rubles, or approximately 14.8 billion yen. The construction of a plant with an approximate site area of 24 hectares will commence in March 2010 and its inauguration is planned in September 2011.
In association with the joint capital investment in the new company, ITOCHU and Yokohama Rubber had reached another agreement in April 2005 to increase ITOCHU's stake in Yokohama Russia L.L.C., a tire sales firm jointly established by the two companies, from the current level at 14.9% to 20%.
ITOCHU believes that its closer ties with Yokohama Rubber will aid in expanding the business of manufacturing and selling Yokohama-branded tires in Russia.