Yokohama Rubber Announces Auto Parts Manufacturing and Conveyor Belt Joint Ventures in China

Tokyo Nov 11, 2005- Aki Tsukioka, writing for JCN reported that Yokohama Rubber announced on November 10 that it has established Yamasei Automotive (Foshan) Co., Ltd., a new joint venture company with Toyoda Machine Works and Yamasei Kogyo, in South China.

Initially, the new company, which is scheduled to commence full-scale operations in December, plans to manufacture and ship power steering pipes to Toyoda-Koki Automotive (Fushan) Co., Ltd., a subsidiary of Toyota Machine Works established in December 2004.

Further, the new company will begin supplying automotive parts to Japanese automotive manufacturers in China in April 2006.

At the same time, the company also announced that it will establish a joint venture company Shandong Yokohama Rubber Industrial Products Co., Ltd. in Feifang, Shandong Province, China, in January 2006.

The new company will be co-established by Yokohama Rubber (China), the company's holding company in China, and Shandong Yuema Rubber Belt, a Chinese conveyor-belt manufacturer, will manufacture and sell conveyor belt products under the brand of Yokohama Rubber.

The joint venture will begin manufacturing steel cord conveyor belts in June 2006 and fabric conveyor belts in the fall 2006. Yokohama Rubber (China) will hold a 51% stake in the new company, which will be capitalized at $9.7 million, and Shandong Yuema Rubber Belt will retain the remaining 49%.

Through theses means, Yokohama Rubber aims to strengthen the production and sales of conveyor belt products targeted at China and overseas.

By Staff Writer