Yokohama Rubber Plans to Acquire Aichi Tire Industry Co., Ltd.
Japan
based tire company, Yokohama, set to acquire domestic industrial tire
manufacturer
Japan: Yokohama Rubber and Aichi
Tire Industry signed an agreement as a part of which, Yokohama would acquire the
renowned industrial tire manufacturer, Aichi Tire Industry, by March 2017.
The acquisition of the
company aims to strengthen the market position of Yokohama Rubber Company
across the region.
Aichi Tire Industry Co., Ltd.
excels in manufacturing tires for forklifts and industrial machinery, whereas,
the company’s product portfolio includes solid as well as press-on tires. As on
financial year, ending on 31st March 2016, the company (Aichi Tire) reported
net sales of approximate USD54.25 million and an operating income of about USD4.32
million.
As per TechSci Research, the acquisition
of Aichi Tire Industry Co., Ltd. by Yokohama, would provide the latter company to
enhance its presence across Japan, along with expanding its tire portfolio in
the country. Moreover, with the conclusion of this deal, the company is eventually,
expected to strengthen its sales in the region in coming years.
According to a recent
report published by TechSci Research, “Japan
Tire Market Forecast and Opportunities, 2021’’, The tire market in
Japan is anticipated to cross $ 32 billion by 2021. Growing demand for small
& mini passenger cars, high vehicle ownership and increasing demand for
better quality tires are some of the major factors anticipated to positively
influence the country’s tire market over the next five years. In Japan, tire
market is predominantly replacement driven owing to large vehicle fleet and
high vehicle ownership ratio. Passenger car tire segment dominated the Japan
tire market in 2015, and the segment is anticipated to maintain its dominance
over the next five years as well owing to increasing penetration and popularity
of electric and hybrid cars.