Joint
Venture Established for Production of Passenger Car Radials
in China
 Toyo
Tire and Rubber Co., Ltd. and Cheng Shin Rubber Industry Co.,
Ltd., a leading Taiwanese tire manufacturer, have obtained approval
from the government of the People's Republic of China to establish
a joint venture in
Jiangsu Province to manufacture and market passenger car radial
tires (PCRs). Toyo will hold a 30% stake in Cheng Shin- Toyo Tire & Rubber
(China) Co., Ltd., the subsidiary of Cheng Shin Rubber already
established there. The joint venture is capitalized at 72 million
us dollars, and is currently building its plant in the Kun Shan
Economic and Technical Development Zone in Jiangsu.
Toyo has had a  technical
assistance agreement with Cheng Shin Rubber since 1982. The new
alliance is aimed at strengthening the ties between the two companies
and achieving overall cost reduction through the innovation of
production methods and processes.Scheduled to begin production
in January 1997, Toyo Tire & Rubber (China) Co., Ltd. intends
to bring daily capacity to 10,000 tires, and will market a stable
supply of tires across China, as well as in the U.S. and Europe.
To make this new venture a success, we look forward to the support
and co-operation of the entire Toyo family, including overseas
sales subsidiaries, distributors and dealers.
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