Yokohama Rubber to increase tyre production capacity in Philippines

Yokohama Rubber starts constructing a new tyre plant at the adjacent area after signing its tenancy agreement in February this year. The company plans to operate the area's first expanded portion in 2013 and makes the area fully operable in 2014. The amount of investment in the first-phase expansion is JPY 20 billion. Also planned is to increase YTPI's annual production capacity to 17 million tyres by 2017 after making an investment to increase the capacity to 13 million by 2014 as the second-phase expansion, making the total amount of investment approximately JPY 50 billion.

Most of the tyres to be produced at the new plant are for the planned export to North American markets. The new tenancy contract for 300,000 square meters gives the YTPI a total plant area of 460,000 square meters, 2.8 times that of its current area.

Established in 1996 as the manufacturing base for passenger-car tyres for export markets, the YTPI is currently manufacturing tyres with internal diameters from 13 to 18 inches for passenger cars and sports utility vehicles (SUVs) and most of the tyres are being exported to Europe, North America and ASEAN countries. The tyres are also delivered to car manufacturers in countries in North America and Asia. As a result of previous three-step expansions, the YTPI had difficulty increasing production within the current plant area.

At present, Yokohama Rubber is expanding the production capacities at Shinshiro-Minami Plant in Japan, Hangzhou Yokohama Tire Co., Ltd., in China, Yokohama Rubber Manufacturing (Thailand) Co., Ltd., and Yokohama Tire Corporation in the USA. In addition, the company is working on the construction of a tyre plant in Russia for its planned operation starting in the fiscal year ending March 2012. These expansion programmes are expected to give the Yokohama Rubber group a total tyre production capacity of 60 million tyres a year by the end of the same fiscal year.