Toyo Tire plans to expand its tire production capacity in Georgia and is currently focused on improving product competitiveness and sales performance in the North American market per its new medium-term management plan.
The company says it will aim to include optimizing product mix to accommodate market trends, advancing development and technical capabilities to deliver surprising products, improving brand equity, and developing an efficient product delivery system. One of Toyo Tires’ strengths is its fast and flexible product delivery system that accommodates market needs and demands. As part of its supply strategy, it is developing a manufacturing and product delivery structure that optimizes its mix of global logistics and production capabilities, taking advantage of what each production base can offer.
Toyo Tires plans to add new buildings and equipment to further expand the production capacity at its US tire plant (Georgia) to align with the “Mid-term ’17” business strategy. The US production base manufactures tires for the North American markets and is the main profit-generator for our company.
In the “Mid-term ’17” management plan, the company plans to increase its tire sales to 400 billion yen ($120 Million) and the operating income to 56 billion yen ($490 Million) in 2020, up 31.6% and 23.3% respectively, compared to the actual results in 2016. This expansion of production capacity is part of its plan to “strengthen the company’s business foundation in order to maximize profits,” as stated in its tire business policy. It is intended to further solidify Toyo Tires’ sales of large-diameter tires for pickup trucks, SUVs, and CUVs, where Toyo Tires already has a competitive advantage.
Toyo Tires plans to invest approximately 14.0 billion yen to construct a new building at its US tire production facility in Georgia. The new building will have an annual production capacity equivalent to 2.4 million passenger vehicle tires. In the initial phase of this project, Toyo Tires will first install equipment to produce half of this volume, which is 1.2 million tires annually (calculated for passenger car tires). Production is
scheduled to start in April 2019.