Yokohama has reached an agreement with global investment firm KKR and other concerned parties to purchase all of the shares of Alliance Tire Group (ATG).
The agreed equity value of the transaction is US$1,179m (approximately ¥136bn). This will enable Yokohama to expand its commercial tire business. Demand for agricultural equipment tires is expected to increase worldwide.
Yokohama is currently in Phase IV (2015–2017) of its Grand Design 100 medium-term management plan, under which it is expanding its commercial tire business and accordingly devoting considerable resources to developing and expanding sales of ultra-large radial tires for mining and construction equipment. Yokohama also recently started production of truck and bus tires at a new plant in Mississippi, USA, and it plans to continue promoting local production for local consumption.
In January, ATG opened its new state-of-the-art tire factory in Dahej, India. With a capacity of 33,000 tons per annum, which will reach 57,000 tons per annum by the end of 2016, the facility is equipped with the latest tire manufacturing equipment. During the initial production phase, tires for tractors, harvesters, implements, sprayers and balers are being produced there.
For more information on the factory click here.
March 29, 2016
