Toyo Tire is Planning to Expand its Facilities in North America
United
States: The United
States based tire company, Toyo Tire & Rubber Company, is planning to further
expand in North America by setting up its Research & Development center
across the region by the end of 2017. By this move, Toyo Tire aims to enhance its
R&D capabilities by dedicating business unit for entire North America.
The company anticipates to
complete the expansion by 2017 in United States. However, the financial details
related to the project were not disclosed by company officials.
The spokesperson of Toyo Tire
stated that the expansion would also lead to a 50 percent employment generation
at every stage, i.e., product design, product planning as well as commercialization.
The company plans on installing new advance equipment, used to measure dynamic features
of a tire. Toyo Tire further added that by the expansion process, the company
would enhance its evaluation and feedback for product development.
As per the company
executives, Toyo Tire, this development would assist the company to generate
demand for both, Original Equipment (OE) and replacement tires, that would relatively
meet the targeted consumer demand.
As per TechSci Research, the
step taken by Toyo Tire, would further enhance the Research & Development
capabilities of the company across the region. Moreover, this would assist the
company to develop an advanced tire portfolio, which would enable them to
target neighboring countries of United States. Eventually, this would
strengthen the company’s sales in the region during coming years.
According to the recent
report published by TechSci Research, “United
States Tire Market Forecast and Opportunities,
2021’’, demand
for tires in the United States is forecast to grow at a CAGR of over 5%, in
volume terms, during 2016-2021. The vehicle fleet of the country is dominated
by passenger car segment, followed by light commercial vehicles, medium and
heavy commercial vehicles, off-the-Road (OTR) vehicles and two-wheeler segment.
As a result, the passenger car tire segment held the largest volume share in
the country’s tire market in 2015, and its dominance is anticipated to continue
during the forecast period as well. Leading global tire companies operating in
the United States include Bridgestone, Goodyear, Michelin, Cooper, Continental,
Sumitomo, Hankook, Yokohama, etc.