Toyo Tyre & Rubber has postponed plans to build a new Asian plant and expand US output after vehicle sales slumped amid a global economic slowdown and the company slashed its full-year operating income forecast, company officials said.
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In its three-year business programme released in May, Toyo Tyre said it would invest about JPY24bn to build a new tyre plant in Asia in fiscal 2010, which starts in April 2010, and about JPY28bn to increase annual US output by 3.2m tyres in fiscal 2011.
But the company is [re]considering the plans while watching the situation that is now difficult, a company official told Kyodo News.
As it reviewed first half results, the company revised its full-year operating income forecast down almost 83% to JPY1bn from JPY5.8bn on sales down 5.9%.
