Yokohama Rubber announced that it will increase the production capacity of Hangzhou Yokohama Tire Company. By the end of 2004, the annual production capacity of passenger tires will reach 1.4 million. This joint venture in China was formed by Yokohama International Holdings Corporation and Hangzhou Rubber Corporation. The sales performance of tires prompted the company to enter the construction phase of the second phase of the project two years ahead of schedule. The construction of the second phase will cost approximately US$26 million.
Hangzhou Yokohama Tire Company was established in December 2001 and is a joint venture company that produces passenger tires. The first phase of construction started in May of that year, and the second phase of the project was originally scheduled to start in 2006. It is now decided to start construction in March 2004 in advance. The second phase will produce larger and more upscale tires and racing tires. The construction area of ​​the second phase of the project will increase from 50,000 square meters to 133,000 square meters. The company currently employs 300 people and will have 500 employees after the completion of the second phase of the project.
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