Toyo Tires to Expand Tire Production Capacity
Hyogo, Japan - 28 September, 2017 - Toyo Tire & Rubber Co., Ltd. (Headquarters: Itami, Hyogo;President & CEO: Takashi Shimizu) plans to expand its tire production capacity in the US andMalaysia.

US Tire Plant (Georgia)

Malaysian Tire Plant (Perak)

Toyo Tire & Rubber is currently focused on improving product competitiveness and sales performancein the North American market per its new medium-term management plan, “Mid-term ’17”. TOYOTIRES’ goals also include optimizing product mix to accommodate market trends, advancing
development and technical capabilities to deliver surprising products, improving brand equity, anddeveloping an efficient product delivery system.
One of TOYO TIRES' strengths is its fast and flexible product delivery system that accommodates
market needs and demands. As part of its supply strategy, it is developing a manufacturing andproduct delivery structure that optimizes its mix of global logistics and production capabilities, taking
advantage of what each production base can offer.
TOYO TIRES plans to add new buildings and equipment to further expand the production capacity atits US tire plant (Georgia) and Malaysian tire plant (Perak) to align with the “Mid-term ’17” businessstrategy. The US production base manufactures tires for the North American markets and is the main
profit-generator for our company. The Malaysian production facility acts as the hub for the global
product supply.
In the “Mid-term ’17” management plan, TOYO TIRES plans to increase its tire sales to 400 billion
yen and the operating income to 56 billion yen in 2020, up 31.6% and 23.3% respectively, comparedto the actual results in 2016. This expansion of production capacity is part of its plan to “strengthen
the company’s business foundation in order to maximize profits,” as stated in its tire business policy.
It is intended to further solidify Toyo Tires’ sales of large-diameter tires for pickup trucks, SUVs, andCUVs, where TOYO TIRES already has a competitive advantage.

■ Expansion of Global Production Capacity(1) Expanding Capacity at the US Tire Plant (Phase 5)
TOYO TIRES plans to invest approximately 14.0 billion yen to construct a new building at its UStire production facility (Toyo Tire North America Manufacturing Inc.; “TNA”; Georgia). The newbuilding will have an annual production capacity equivalent to 2.4 million passenger vehicle tires.
In the initial phase of this project, TOYO TIRES will first install equipment to produce half of thisvolume, which is 1.2 million tires annually (calculated for passenger car tires). Production isscheduled to start in April 2019.
(2) Expanding Capacity at the Malaysian Tire Plant (Phase 2)
TOYO TIRES plans to invest approximately 21.0 billion yen to construct a new building at its
Malaysian tire plant (Toyo Tyre Malaysia Sdn Bhd; “TTM”; Perak). The new building will have anannual production capacity equivalent to 4.8 million passenger vehicle tires. In the initial phaseof this project, Toyo Tires will first install equipment to produce half of this volume, which is 2.4
million tires (calculated for passenger car tires). Production is scheduled to start in October 2019.
(3) Possible Construction of New Production BasesTOYO TIRES foresees continued growth beyond 2020 and is considering adding new production
bases to position itself in the global market in its “Mid-term ’17” business plan. It will continue toevaluate various opportunities for adding new production bases, concurrently with the expansionof capacity at its current production plants.
■ Outline of the Two Plants to be Expanded(1) US Tire Plant (TNA)
Location
Date Established
Business Activity
Representative
Paid-in Capital
Equity Percentage
Size of the site

Bartow County, Georgia, USA
June 2004 (construction was completed in December 2005.
Production started in same month)
Manufacturing of radial tires for passenger vehicles and light trucks.
Donald C Bunn
150 million US Dollars
Wholly owned by Toyo Tire & Rubber Co., Ltd.
（Consolidated subsidiaries）
150 Acres (approx.. 607,000 m²)

TNA primarily manufactures and sells light-truck tires and other large-diameter tires for pickup
trucks and SUVs for the North American market. A highly automated and proprietary production
system, Advanced Tire Operation Module (A.T.O.M.), is used in the entire facility. TNA has been
increasing its production capacity in multiple steps over four phases to meet the sharp increasein demand for light-truck tires in the North American market. In the fall of 2016, TNA became theTOYO TIRES Group’s largest tire manufacturing facility with an annual production capacity of11.5 million tires (calculated for passenger car tires). TOYO TIRES currently has the largest shareof large overall diameter in 20 for pickup trucks and SUVs tires market in North America.

(2) Malaysian Tire Plant (TTM)
Location
Taiping, Perak, Malaysia
DateApril 2011 (construction was completed in May 2013. Production started
Establishedin same month)Business
Manufacturing of radial tires for passenger vehicles and light trucks.
Activity
Representative Mike Toh
Paid-in Capital
400 million Malaysian Dollars
EquityWholly owned by Toyo Tire & Rubber Co., Ltd.
Percentage（Consolidated subsidiaries）
Size of the site
120 Acres (approx.. 480,000 m²)
TTM functions as a global hub for supplying not just Southeast Asia, but also other market
segments, including Europe, Japan, and North America. TNA uses its highly automated andproprietary tire production technology, A.T.O.M., at its entire facility. TNA produces and delivers
high quality, high performance products with excellent uniformity* and is highly regarded in themarketplace. The current TTM plant building has a production capacity of 5 million units per year
(calculated for passenger car tires). TOYO TIRES already has enough land to construct anotherbuilding of the same size next to it.
* Uniformity: Uniformity (balance) of the elements required in tires, including not just dimensions, but also weight and rigidity.

■ Production Capacity Expansion Schedule (Overview)(1) US Tire Plant (TNA)
Investment[Phase V Capacity Increase]
Summary
Construction of a new plant building on the TNA property.
Initial installation of production equipment for half of the capacity of the newbuilding.
TotalApprox. 14.0 billion yen
Investment
ScheduleConstruction of the new plant building to start in February 2018. Installationof production equipment to start in January 2019.
Production
Production to start in April 2019.
Start
Capacity
1.2 million tires per year (calculated for passenger car tires)
Added(2) Malaysian Tire Plant (TTM)
Investment[Phase II Capacity Increase]
Summary
Construction of a new plant building on the TTM property (next to the current
TTM plant building).
Initial installation of Production equipment for half of the capacity of the newbuilding (equivalent to the current TTM capacity).
TotalApprox. 21.0 billion yen
Investment
Schedule
Construction of the new plant building to start in August 2018. Installation ofproduction equipment to start in July 2019.
Production
Production to start in October 2019.
Start
Capacity
2.4 million tires per year (calculated for passenger car tires)
Added

■ Reference (Past and Future Expansions at the US and Malaysian Plants)(1) US Tire Plant (TNA)Expansion
Schedule

Phase III
Expansion

Phase IV
Expansion

Completion
Date
AnnualProduction
Capacity*2011
August2015
DecemberPhase IV
AdditionalCapacity
Expansion2016
October

6.5 million
tires

9 million
tires

11.5 million
tires(2) Malaysian Tire Plant (TTM)
Expansion
At Start of Operation
ScheduleCompletion
2013
DateMay
AnnualProduction
2.5 million tires
Capacity*This Project[Phase V Expansion]
Final Capacity
13.9 million tires

Phase IExpansion
2015
July

This Project[Phase II Expansion]

5.0 million tires

9.8 million tires

Final Capacity*Calculated for passenger car tires

Head Office
Tokyo Branch Office

Corporate Communications Planning Dept.

Telephone: +81-72-789-9110 Facsimile: +81-72-773-3272
Telephone: +81-3-5822-6621 Facsimile: +81-3-3865-2240