Toyo Tire Corporation announced plans to shut down a wholly-owned tyre plant in the Malaysian state of Perak by the end of June 2021, according to local reports.
The Japanese tyre maker will also dissolve the related manufacturing subsidiary, Silverstone, once all formalities have been completed.
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The company said in a statement the closure was unavoidable "considering the operating environment, the plant's limited capacity and its position in the group's global strategy".
The group operates another, larger tyre plant in Malaysia through its Toyo Tire Malaysia (TTM) subsidiary, producing Toyo brand tyres for south-east Asian markets and for export to markets including North America, Europe and Japan.
The company confirmed it would transfer production of Silverstone brand products to TTM so the supply of local products can continue uninterrupted.
Toyo booked an extraordinary loss of JPY6.3bn (US$60bn) in its consolidated financial results for the fiscal year ending on 31 December 2020, including a JPY5.1bn impairment loss and a JPY1.2bn charge for liquidation of subsidiaries.
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