Yokohama signs offtake deal with Chinese OTR company

ERJ staff report (DS)

Tokyo -- The Yokohama Rubber Co., Ltd., has signed an off-take agreement for off-road and mining tyres with Shandong Xingda Tyre Co., Ltd.

Shandong Xingda Tyre Co. is a Chinese manufacturer of off-the-road (OR) tyres for construction and mining vehicles. Under the terms of the agreement, Yokohama Rubber would provide Shandong Xingda Tyre with technical support regarding OR radial tyres and that Yokohama Rubber would off-take a fixed quantity of OR tyres manufactured by Shandong Xingda Tyre.

Technical support is planned to begin in or after the summer of 2012, and the off-take is planned to begin in the latter half of 2013. Tyres off-taken will be radial tyres 25 inches or larger, while details as to quantity, time period, etc. remain to be finalised. Yokohama Rubber will be globally marketing all the off-taken tyres under the Yokohama Brand.

While OR tyres, which are used for dump trucks and wheel loaders, are in high demand amid the globally accelerating resources development, only a limited number of tyre makers can manufacture high-quality, reliable OR tyres.

For Shandong Xingda Tyre, a manufacturer founded in 2005 that is specialised in OR radial tyres, the partnership with Yokohama Rubber will contribute to quality improvement and stable operation. The company possesses a large-scale factory with the latest facilities in Dongying, Shandong and produces and sells its products mainly for export.

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Press release from Yokohama