Yokohama Rubber to open Brazil factory
Yokohama Rubber, Japan’s third-largest tyre company, has announced it is to open a factory in Brazil.
According to a Reuters report, the firm will build a plant in the nation rather than continuing to ship tyres in, due to high levels of demand in the developing country.
The news provider adds that the exact capacity of the factory, and another which is being developed in Russia, will be determined by March 2009 but it is thought production levels will be around one million tyres per year.
"It makes more sense to produce tyres there and sell them directly in the region," a spokesman told the news resource.
"We’ll keep shipping value-added products from Japan… [The plants] will start small and expand if and when sales increase."
This boost to the Brazilian economy may be welcome news to people looking to invest in Brazilian property.
Meanwhile, Volkswagen recently announced that it has had "strong" growth in Brazil, helping it to sell a record 3.27 million vehicles during the first half of 2008.
