The Silverstone tyre plant in Kamunting, Taiping in the state of Perak will cease operations in June this year, the New Straits Times reported. Silverstone Malaysia (SSM), the wholly-owned subsidiary of Toyo Tire Corporation, will also be dissolved once the necessary preparations have been completed, the parent company said in a statement.

The Taiping plant’s production capacity and position within the wider group’s global strategy from an all-round perspective showed that the closure was unavoidable, according to the Japanese tyre manufacturer’s statement. In addition to the Silverstone facility, the Toyo Group also operates Toyo Tire Malaysia (TTM) which produces tyres under the Toyo brand.

“Toyo Tire Malaysia functions as a global hub, supplying tyres not only to Southeast Asia, but also to other global markets including North America, Europe and Japan. Production of certain Silverstone brand products previously manufactured at SSM (the Silverstone plant in Taiping) will be transferred to TTM, and production and supply will continue,” the firm said in its statement as quoted by the news daily.

The company booked an extraordinary loss of 6.27 billion yen (RM239 million) in its consolidated financial results for the fiscal year ended December 31, 2020. This consisted of an impairment loss of 5.11 billion yen (RM195 million), and a loss on liquidation of subsidiaries and affiliates of 1.16 billion yen (RM44.2 million).