The deal will cost Toyo Tire $148 million and plans are to put all this money at work as soon as possible. The Japanese tire maker will begin manufacturing Toyo and Nitto brand tires as soon as possible, in an attempt to tap into the large market Silverstone had.
The move is part of a broader plan Toyo Tire has to expand into the Southeast Asia market. Alongside with the purchase of Silverstone Berhad, the Japanese will begin construction at a new production facility in China, at Toyo Tires Zhangjiagang.
Aside for this part of the world, the tire maker is considering strengthening its position in the US, with plans to expand the Toyo Tire North America Manufacturing facility already approved.
“Toyo believes that, through the acquisition of Silverstone, it is now positioned to make a full-scale entry into the fast-growing Southeast Asia market,” the company says in a statement.
“Toyo has also said it has plans to further improve the quality of the Silverstone brand tire, with the goal of expanding sales throughout Asia.”
Currently, Toyo Tire is the fourth-largest manufacturer and distributor of tires in Japan. On the other hand, Silverstone was the second largest tire manufacturer in Malaysia. The deal between the two companies is expected to conclude by the end of the first month of 2011.