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                                                    Taiping, Perak, Malaysia


July 18, 2011

Japan's Toyo Tire Invests RM1.2 Billion To Expand Operations In Perak

Tyre manufacturer from Japan, Toyo Tire & Rubber Co Ltd (Toyo Tire), which has taken over Taiping based Silverstone Bhd (Silverstone), aims to increase its annual production of tyres to 15 million units in the next five years, International Trade and Industry Minister Datuk Seri Mustapa Mohamed said today.

He said Toyo Tire, which acquired 100 per cent equity of the local tyre manufacturer, will be investing RM1.2 billion to expand its operations in the South East Asia and Asian market.

"Two weeks back I was at Toyo Tire's headquarters in Osaka, Japan to meet its President and Chief Executive Officer, Kenji Nakakura, and he had informed about the company's plans to expand its operations in Perak with an investment of US$400 million (RM1.2 billion)," Mustapa told reporters following the meeting of Nakakura and Menteri Besar Perak Datuk Seri Dr Zambry Abdul Kadir here Monday.

Mustapa said Toyo Tire's investment would cover plans to increase the existing factory's production capacity in Kamunting, Taiping as well as for the construction of a new factory on a 20-hectare site in another area which has already been identified.

A significant share of the tyres produced in Taiping will be for export to the Asian market, he said.

In line with its expansion plan, Toyo Tire also plans to increase its labour force from the current 1,400 workers to 2,400 workers at its factory in Kamunting.

An earlier report said Toyo Tire had bought Silverstone for RM470 million.

Meanwhile, Dr Zambry said the entrant of big time investors like Toyo Tire into the state was reflective of Perak's ability to continue to attract investments.