Tokai Rubber Industries Ltd, a Japan-based maker of automobile components, announced on Dec. 13 that it will set up a joint venture in Tianjin, one of China's four municipalities directly under the central government, next year, sources reported.
The JV will have a registered capital of RMB 100 million. Tokai Rubber and a local parts manufacturer Tianjin Huanyu Rubber & Plastic Products Mfg Corp will have a 60% and 40% stake in the JV, respectively. Annual sales value is expected to reach JPY 5 billion by 2015.
Reportedly, the JV will be primarily engaged in the manufacturing and sale of automobile vibration control rubber in China, and the new plant, to start operation next June, will mainly provide low-price components and parts to domestic auto manufacturers.
In 2004, the Japanese company has established a wholly-owned automobile rubber hose plant, called Tokai Rubber (Guangzhou) Co Ltd, in Guangzhou, Guangdong Province.
