On September 9, Japan's Toyo Rubber Industry Co., Ltd. (Toyo Tire), a well-known auto parts manufacturer in Japan, held a groundbreaking ceremony for its new factory in Zhangjiagang City, Jiangsu Province.

The new plant is located in Zhangjiagang City, Jiangsu Yangtze International Chemical Industry Park. It is the second overseas production base of Toyo Tire following the United States factory. This new factory, established in April this year, is named Dongyang Tire Zhangjiagang Co., Ltd., with a registered capital of US$50 million. It is a wholly-owned company of Dongyang Tire in China. It will employ 500 people in the future and its executive chairman will be the executive officer of Japan’s Toyo Tyre. The staff is full of Liu, and the general manager is Matsumoto Yang. It is reported that the new plant will mainly produce tires for passenger cars and medium-sized goods vehicles. It plans to produce 2 million tires a year and it is expected to start production at the end of 2011.

At the cornerstone laying ceremony, Toyo Tykichi, executive chairman of the company, said: “The new plant is one of the most important production bases of the Toyo Rubber Group, and it is also the first wholly-owned tire manufacturing plant in Asia outside of Japan.” Kurakoshi told reporters that after the completion of the new plant, Toyo Tire will introduce the latest technology, manufacture high-performance tires, and compete with rivals in the high-end market.

In fact, before the establishment of the Zhangjiagang new factory, Toyo Tire established Toyo Tire (Shanghai) Trading Co., Ltd. as a sales company in China in November 2002. It sells radial tires and radial tires produced by Toyo Tire. The sales network has been Coverage to all parts of the country, mainly based on retail.

Statistics show that in recent years, China's tire market has grown rapidly, with an average annual growth rate of about 20%. In 2009, China's tire production reached 600 million. According to the forecast of Dongyang Tire, the tire market in China and Asia (excluding Japan) will reach 3 billion in 2010. Therefore, for the Chinese market, which has a huge growth potential for cars, the future development of the tire market is still very broad. Toyo Tire said that the economic growth of Zhangjiagang City has attracted much attention. Its economic development has attracted the attention of many overseas companies, including Japanese companies. Toyo Tire is seeing all these opportunities, so invest here to set up factories.

At present, the world's major tire manufacturers have set up factories in China to put into production. Nakakura Kenji said that due to the strong popularity of domestic automobiles, the investment of various auto parts manufacturers in the Chinese market is also increasing. Given the strong growth momentum in the Chinese tire market, each tire manufacturer will inevitably increase its supply to the Chinese tire market. However, as China's auto industry continues to mature, it will guide the competition in China's tire market from the amount of competition began to quality competition, which is also conducive to the business development of Toyo Tire in China.