| TOYO TIRE & RUBBER CO. LTD.
had agreed to invest in a joint venture company known as "Cheng Shin-Petrel
tire (Xiamen) Co., Ltd." of which stockholders are Maxxis International Co.,
Ltd. (located in the Cayman Isles, British West Indies) and Xiamen Petrel
Industrial Co. , Ltd. (located in Xiamen, China).
Construction of the tire factory has been completed. Production of radial
tyres for trucks and buses starts in April 2004. This factory is located in Xiamen, China. |
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Toyo Tire receives 20 per cent of the new company's shares from Maxxis
International Co. Ltd., This investment amounts to 10 million U.S. dollars.
Cheng Shin-Petrel Tire (Xiamen) Co. Ltd., will change its company name to
CSTP (Xiamen) Co. Ltd. once the share transfer is completed.
Capital investment totals 150 million U.S. dollars, of
which 130 million U.S. dollars is to be invested in the first stage.
Operation starts with production of 300,000 radial truck and bus tyres
annually with the annual target volume being 750,000 tyres by 2006.
Production will focus on truck & bus tyres first. The second stage
investment of 20 million U.S. dollars, assuming the operation runs according
to plan, will provide for the production of light truck radial tyres.
TOYO believes that this new operation in China will make
a large contribution to the globalisation of Toyo Tire.
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