China's tire production increased by 12% in July

According to data reported by the National Bureau of Statistics of China, Dow Jones Newswires reported that in July 2011, China’s tire production increased by 12.5% ​​year-on-year to 73 million.

In the first seven months of 2011, tire production increased by 5% to 461 million.

According to IHS Automotive Supplier News, Japanese tire manufacturers are expanding their production in China.

Toyo Tire & Rubber Co. purchased a 75% stake in China's Shandong Luohe Rubber and Tire Company for US$51 million. Yokohama Rubber (China) also purchased a joint venture partner, YHI International Co., Ltd.

Japan's two other tire manufacturers Bridgestone and Sumitomo are also expanding their business in China.

Due to the increase in car ownership, the demand for tire replacement increased, and tire prices also rose due to rising rubber costs.

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