Toyo May Scale Back China Operations

According to Bloomberg, Toyo Tire may slow or stop making investment in China due to anti-Japan sentiment coming from the country. This could lead them to invest in other Southeast Asian countries instead of Big Red. All this comes after Japan bought islands claimed by both countries. We’re not sure what the big deal is, but I guess the U.S. would get pissed if China bought Hawaii.

For now, this shouldn’t have an impact on the U.S. operations of Toyo, but you never know. Who knows how this will impact the company, especially if China stops buying Japanese products or a conflict occurs in the region. As the Bloomberg article points out, China is Toyo’s second largest manufacturing region next to Malaysia. This issue could lead to higher prices if Toyo cannot expand fast enough outside of the region. Keep your fingers crossed. Click here to read the entire Bloomberg article.