Toyo Tires and Earthquake in Japan

[MR LIPP]

OSAKA, Japan (March 12, 2011) — Toyo Tire & Rubber Co. Ltd. is reporting it has suspended production at its tire factory in Sendai, Japan — near the epicenter of the March 11 earthquake that shook Japan — and is attempting to verify the “safety and welfare” of its employees in the area.
Toyo said production at the plant in Sendai was suspended due the loss of power in the region. The company said it is taking “appropriate steps to respond to the crisis,” including setting up an emergency crisis center.

Once power is restored and the safety of the plant has been confirmed, Toyo said it plans to restore operations, but it is not yet clear when this might happen.

The Sendai plant employs 1,200 workers, making passenger, light truck, medium truck, industrial and racing tires.

Toyo said none of its plants was affected by the tsunami that followed the 8.9-magnitude earthquake that struck off Japan’s northeast coast at 2:46 p.m. March 11, and that it appears none of its facilities has suffered significant damage.

At this time, it is not yet known what the company’s financial losses or the impact to business results will be from this earthquake.

[MR LIPP]

While affected, Japan’s tiremakers have been trying to get back to work. Here is the latest news:

Toyo

According to Toyo Tire & Rubber Co. CEO and president Kenji Nakakura, the company’s passenger and light truck/SUV tire plant in stricken Sendai resumed partial production on Mar. 23. Toyo’s manufacturing subsidiary, Fukushima Rubber Co. Ltd., has also resumed partial operations.

At Sendai, the facilities and production lines have “partially opened again to recommence production,” said Toyo. “It is expected that other production lines can reopen again in turn. In accordance with the recovery and stabilization of the operational environment, the production will gradually be increased in due time, and we are working toward achieving full regular operations as soon as possible.

“Tires will continue to be manufactured on a restricted basis due to the limited availability of electricity, fuel and raw materials, and the disruptions from a still-recovering transportation system,” Toyo said.

As of Mar. 21, Fukushima Rubber, which produces industrial rubber products, automobile parts, water protective sheets, and other products for Toyo, production lines have opened again to resume manufacture of some of the products.

“Products will be manufactured on a restricted basis for the time being, due to the limited availability of electricity, fuel and raw materials,” said Toyo. “In addition, because the transportation infrastructure and fuel supply is still in the process of recovery, the logistics need time to stabilize. Accordingly, Toyo will take the most appropriate production and supply structure in response to the circumstances as it develops, and increase production as the situation improves.”