Tokyo-The Yokohama Rubber Co., Ltd., announced today that Suzhou Yokohama Tire Co., Ltd., its affiliate for the production and sale of steel radial tires for truck/buses (TB) in China, held a groundbreaking ceremony on August 11 in Suzhou New District, Suzhou, where the affiliate plans to construct its plant.

Yokohama invited deputy mayor of Suzhou City People's Government and other government executives as well as tire dealers from various cities in China. From Yokohama Rubber, President Tadanobu Nagumo, Director and Senior Managing Corporate Officer Takashi Sugimoto who also serves as Chairman, Yokohama Rubber (China) Co., Ltd. and other executives attended the ceremony. Total participants reached approximately 170. In his remarks, President Nagumo said, "The new plant will become the first TB-use steel radial tire plant in China for Yokohama Rubber Group. At present, we rely on the import from Japan for TB-use steel radial tires for sale in China. However, once operation starts at the new plant, our supply capacity will significantly expand. We want to further increase production capacity in response to sales growth in the future".

Suzhou Yokohama Tire Co., Ltd was established in April 2006 with full capitalization of 27.1 million dollar by Yokohama Rubber (China) Co., Ltd. With an investment of 81 million dollar, it constructs the plant that is scheduled to begin operation in October 2007 at an annual production capacity of 350,000 tires. The new plant will be the fourth TB-use steel radial tire plant for Yokohama Rubber Group in addition to those in Japan, the U.S. and Thailand. It will also be the second plant in China for Yokohama Rubber Group following a passenger car-use radial tire plant of Hangzhou Yokohama Tire Co., Ltd., which began operation in May 2003.