Yokohama says it has established Yokohama Rubber Singapore, with the new subsidiary capitalised at US$20m – all equity capital from Yokohama Rubber – scheduled to begin full operations from mid-May.
Yokohama Rubber has had a branch office in Singapore engaged in the procurement of natural rubber from South-East Asian nations, with the company noting the decision to establish a local subsidiary: “Is in line with the Yokohama Group’s plan to raise the efficiency of its raw material procurement function on a global basis.”
The new operation initially will be engaged in securing natural rubber for Yokohama’s Japan plants in fiscal 2015, but the plan is to expand its natural rubber procurement business to also cover the needs of the Yokohama Rubber Group’s overseas plants from fiscal 2016.
In the future, operations will be expanded to include the procurement of raw materials other than natural rubber.
The new subsidiary also plans to strengthen raw material inventory controls as part of its efforts to establish a more stable and efficient global procurement structure.
The existing Singapore office will continue operating until it completes the handover of its functions to the new subsidiary.