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Toyo Tire to Sell Non-Auto Units

Toyo Tire & Rubber Co. is shedding scandal-tainted nonautomotive operations to support its core business.

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Toyo Tire & Rubber Co. is shedding scandal-tainted nonautomotive operations to support its core business.

Toyo Tire will sell Japan-based industrial materials and construction-use urethane units, including such products as rubber hoses and waterproofing material, The Nikkei reports. Those operations generate 30 billion yen ($262 million) in revenue, equal to roughly 10% of overall income.

Proceeds from the sale will be used to expand Toyo’s tiremaking operations in Malaysia and help pay for a U.S. design center next year.

The Nikkei notes that Toyo has been embroiled in four scandals over the past 10 years, including falsified quality data for building insulation materials and performance tests for seismic shock absorbers used to stabilize skyscrapers. None of the problems involved the company’s tire business.

Gardner Business Media - Strategic Business Solutions