Toyo Tire Corporation announces major change in Chinese subsidiary

Tokyo, Japan – In a significant strategic move, Toyo Tire Corporation has announced the partial transfer of equity interests in its Chinese subsidiary, Toyo Tire Zhangjiagang Co., Ltd. (TTZ), to Liaoning Hengdasheng Investment Co., Ltd. (LHI). This decision, disclosed on February 14, 2025, involves transferring 86% of Toyo Tire’s equity in TTZ, a tire manufacturing subsidiary based in Zhangjiagang City, Jiangsu Province. The transfer aims to enhance TTZ’s operational support and market presence in China and other Asian countries.

TTZ has faced challenges in leveraging its competitive advantage in the Chinese passenger vehicle tire market due to slower-than-expected brand and product recognition. By transferring a controlling interest to LHI, Toyo Tire hopes to ensure that TTZ receives the necessary operational support to thrive in the competitive market. This move is part of Toyo Tire’s broader strategy to optimize its global supply system and allocate management resources more effectively.

LHI, an industrial investment company based in Shenyang, Liaoning Province, has been Toyo Tire’s marketing alliance partner since 2023. The partnership is expected to provide TTZ with the strategic and operational backing needed to improve its market position. The transfer is also anticipated to positively impact Toyo Tire’s consolidated financial forecasts for the fiscal year ending December 31, 2025.

This strategic reassessment underscores Toyo Tire’s commitment to strengthening its global operations and ensuring sustainable growth. By aligning with LHI, Toyo Tire aims to bolster its presence in the Chinese market while focusing on its core markets in North America and Europe. The company remains dedicated to delivering high-quality products and services to its customers worldwide.