July 26, 2000 Sumitomo Rubber Industries, the second largest tire maker in Japan and the world's fifth largest tire producer, recently purchased a 10 percent share of Hwa Fong Rubber Industries of Taiwan. Hwa Fong is a leading Taiwan maker of industrial, bicycle and motorcycle tires. With the purchase, Sumitomo plans to expand its production base in the Asian market. According to Jerry Lee, export manager of Hwa Fong, Sumitomo has been cooperating with Hwa Fong since 1979 to produce motorcycle tires sold in both Japan and Taiwan. Starting with its Thailand factory, Hwa Fong began making tires for Sumitomo under the Dunlop brand name in 1988, and there has been close contact between the two companies ever since. Sumitomo is interested in utilizing Hwa Fong's existing factories, such the production facility in mainland China, rather than building new factories of its own. As the past collaboration between the two firms has been so successful, Mr. Lee anticipates excellent results from the new deal. "Now that Sumitomo has become our biggest stockholder, we will have a closer cooperation, not just in terms of technology, but also as a strategic alliance,"noted Mr. Lee. (back to top) |