Tokyo—The Yokohama Rubber Co., Ltd. today announced that it increased its share in the new joint-venture company, Hangzhou Yokohama Tire Co., Ltd., in China from 45 percent to 80 percent and paid up the additional fund on April 1, 2002. As a result, other joint venture partners, YHI Holdings Pte. Ltd. and Hangzhou Rubber (Group) Co., now have 10 percent each of the 12 million dollar company, enabling Yokohama Rubber to play a more leading role in steering the company.

At the general meeting of shareholders held in March, seven out of nine board directors of the new company were already appointed from Yokohama Rubber. The groundbreaking ceremony for the construction of the new company' s buildings is scheduled for April 22.

YHI Holdings Pte. Ltd. is a Singapore-based distributor of Yokohama-brand tires. Hangzhou Rubber (Group) Co. is headquartered in Hangzhou City and one of the largest tire manufacturers in China.

The three companies jointly created Hangzhou Yokohama Tire Co., Ltd. in December 2001 for the purpose of manufacturing and selling Yokohama-brand radial tires for passenger cars in China. Start-up operations of the new company are two-staged. In the first stage, it will begin manufacturing tires by May 2003 by constructing a tire plant with a production capacity of 750,000 tires a year. In the second stage, it plans to increase the capacity to 1.5 million tires a year.

Name: Hangzhou Yokohama Tire Co., Ltd.
Capital: $12 million during the first stage of operation
Equity: Yokohama Rubber 80% YHI Holdings 10% Hangzhou Rubber 10%
Board directors: Nine in total (7 from Yokohama and 1 each from YHI Holdings and Hangzhou Rubber)
Chairman: Takashi Sugimoto (Board Director of Yokohama Rubber)
President: Tatsuya Murata (Yokohama Rubber)
Location: Economy and Technology Development Region, Hangzhou City, Chekiang Province, People's Republic of China
Main business:Manufacture and sale of Yokohama-brand radial tires for passenger cars
No. of employees: Approx. 300 during the first stage
Production capacity: Annual 750,000 tires during the first stage and annual 1.5 million tires during the second stage
Start of operation: In May 2003 for the first stage and in 2006 for the second stage
Total investment: $30 million for the first stage and $30 million for the second stag