Toyo Tire Corp is closing down its production at its wholly-owned Malaysian tire manufacturing subsidiary Silverstone Bhd in Perak by June 2021.
Subsequently, it also intends to dissolve the subsidiary once the necessary preparations have been completed.
In a statement today, the Japanese tires manufacturer said considering its operating environment, the position of the plant in the group’s global strategy and its production capacity from an all-round perspective showed the conclusion for the plant closure is unavoidable.
“The Toyo Group also operates another manufacturing subsidiary in Malaysia, Toyo Tire Malaysia Sdn Bhd (TTM), which produces Toyo Tires brand tires.
“TTM functions as a global hub, supplying tires not only to Southeast Asia, but also to other global markets including North America, Europe, and Japan.
“Production of certain Silverstone brand products previously manufactured at SSM (Silverstone plant) will be transferred to TTM, and production and supply will continue,” it said.
Toyo said in accordance with the resolution to cease production at and dissolve Silverstone, the company has booked an extraordinary loss totaling 6,270 million yen, in its consolidated financial results for the fiscal year ended December 31, 2020.
This consists of an impairment loss of 5,110 million yen and a loss on liquidation of subsidiaries and affiliates of 1,159 million yen.
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