Toyo slows pace of expansion at US plant

Bruce Davis, ERJ staff (TB)

Cypress, California -- Toyo Tire USA Corp. is slowing the pace of work on a $270 million (Euro 208 million) expansion at its plant in White, Georgia, blaming the slowing global economy and shrinking demand in North America.

Toyo did not specify to what extent the expansion schedule will be affected, saying the construction schedule for the 76 000-m². expansion would go ahead as planned, but the installation of machinery would be stretched out longer than originally planned, according to Carlos Kibata, president of Toyo Tire Holdings of Americas Inc.

According to the expansion plans made public in May, the Phase III expansion was supposed to add 2.4 million units of annual capacity during 2010 and an additional 800 000 units in 2011.

The firm broke ground Sept. 1 on the expansion at the plant, where Toyo also is reconfiguring the layout to shift production more toward broadline tyres and away from larger diameter SUV-type tyres, Mr. Kibata said, owing to falling demand for the latter.

Toyo also plans to start production next year at the White plant of up to 300 000 Bridgestone- and/or Firestone-brand passenger/light truck tyres annually as part of the recent “business alliance” between its parent Toyo Tire & Rubber Co. Ltd. and Bridgestone Corp.

The 3-year-old White plant lists annual capacity of 2 million units with 400 employees.

From Tire Business (A Crain publication)