Capacity Increase at TNA Tire Plant and New Asia Tire Plant

(May 20, 2008)
OSAKA, JAPAN - May 20, 2008 - Toyo Tire & Rubber Co., Ltd. (President & CEO: Kenji Nakakura) hereby announces its plans to ramp up capacity at Toyo Tire North America Manufacturing Inc. (TNA) and establish a new tire plant in Asia. These decisions have been made with a view towards reinforcing the global supply system of its tire business as a part of the Medium-Term Business Plan 2008, a new three-year business plan that will continue through the year ending March 31, 2011. Below are the details of these plans.

1. Capacity increase at TNA (phase 3)

Fully incorporating Toyo's proprietary new Advanced Tire Operation Module (A.T.O.M.) engineering method, TNA began full-scale production of tires for passenger cars and light trucks in March 2006 (phase 1). In May 2007, the plant began gradually ramping up its capacity (phase 2) but, in order to meet current strong demands and prepare for future business expansion in North America, it was decided that further capacity building (phase 3) would be necessary during the period of the new three-year business plan. The total amount of investment is estimated at around 28.0 billion yen. With this plan, the plant aims to increase its annual output by 2.4 million units and 3.2 million units in fiscal years 2010 and 2011, respectively, compared with fiscal year 2008.

2. Construction of a new tire plant in Asia

Based on the assumption that merely increasing production at existing plants, including TNA's phase 3 capacity building described above, is not sufficient to meet expected growth in global demands, Toyo has decided to construct a new tire plant in Asia. An export center for the global market, including Asia, the new plant is expected to underpin the continued growth of the tire business and the drive to boost cost competitiveness. The location of the plant will be chosen from among a list of Asian cities for scheduled completion during fiscal year 2010. The total amount of investment is estimated at around 24.0 billion yen. The new plant is expected to produce approximately 4 million units of tires annually (primarily for passenger cars) by March 2012.

Under the new business plan's corporate slogan "Global Growth," we will remain committed to the enhancement of our corporate value by developing global strategies and fostering the growth of our mainstay tire business.