Toyo Tire and Rubber Co., Ltd. announced today that Toyo Tire North America Manufacturing Inc. (“TNA”; James L. Hawk, president) will begin its fourth expansion of production capacity in order to establish a supply system to meet growing tire demand in the North American market. As the North American base for production of passenger vehicle and light truck tires, TNA implemented and since 2005 has utilized a highly automated and proprietary tire production system called Advanced Tire Operation Module (A.T.O.M.). This system produces highly consistent, highly uniform tires, and is designed for multi-product, small-lot production with reduced lead times. TNA’s second stage of capacity began from 2007, the third stage from 2010, and in August 2011, the company quickly achieved… the goal set forth in Toyo Tires’ Mid-term Business Plan of establishing an annual production capacity of 6.5 million tires (*converted for passenger vehicle tires).
This fourth stage of production capacity expansion by TNA within the time parameters of the 2011 Mid-term Business Plan will further solidify Toyo’s base of operations in the North America, which the Company has positioned as a strategically critical market, with a goal of meeting the market’s vigorous demand for tires, and which the Company believes will contribute to further growth.
With an investment of approximately 20 billion yen, the plan is to increase the size of the facility by 1.5 times, install equipment that will represent half of all capacity, and initially achieve an annual production capacity boost of 2.5 million tires.