Tokai sets up air spring JV in China

ERJ staff report (DS)

Tokyo -- Tokai Rubber and Sumitomo Electric have agreed to set up a joint venture company to make air springs and other anti-vibration products for rail systems in China.

The unit will be set up in Changzhou City, Jiangsu Province, China and will make and sell air springs and rubber anti-vibration products for rail vehicles. Initial capital will be Yuan 30 million (euro 3.1 million). The two partners will each put in 27.5 percent of the equity, with a joint venture company putting in the remaining 45 percent.

The unit is expected to begin production in February next year and employ 50 people by 2012. Tokai said it expects sales by 2012 to be around yuan 170 million (euro 17.6 million).

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Press release from Tokai (Japanese language)

Press release from Tokai (auto-translated into English)