TOKYO (Nov. 10, 2005) — Yokohama Rubber Co. Ltd. is setting up a holding company in Shanghai, China, to oversee control of its growing business operations in China.
The new company, Yokohama Rubber (China) Co. Ltd., will oversee three existing production and sales companies and two others to start operating next year, Yokohama said.
By establishing a holding company, Yokohama said it expects to improve efficiency by integrating duplicate businesses among its companies and strengthening their functions, including sales promotion and marketing efforts. Yokohama Rubber (China) will be capitalized at $30 million.
Yokohama's subsidiaries in China now are: Hangzhou Yokohama Tire Co. Ltd., producing and selling passenger tires; Yokohama Hamatite (Hangzhou) Co. Ltd., producing and selling sealant for passenger cars; and Yokohama Hoses & Coupling (Hangzhou) Co. Ltd., assembling and selling high-pressure hoses.
Additionally, Yokohama is in the process of setting up joint venture companies to produce and sell conveyor belts and sell tires, the latter starting in April 2006.
Yokohama did not say what its sales in China are or how many employees it has there.