Yokohama to invest over €800m in expansion, upgrades

Tokyo — Yokohama Rubber Co. Ltd is planning to invest 120 billion yen (€886 million) in expanding and upgrading its tire production worldwide within the next five years, said a company announcement on 13 Feb.

Offering a window to its Phase IV of its Grand Design 100, Yokohama Rubber said it would work to increase the overseas share of its business with automakers and planned to raise its annual tire production capacity to 74 million tires/year by 2017 and 89 million tires/year by 2020.

The targets show estimated rises of 13-percent by 2017 and 30-percent by 2020 from the company’s current production capacity of 68 million tires/year.

Stating that “customer satisfaction” and “vigorous investments” were the highlight of Phase IV, Yokohama said the plan calls for the group to achieve an operating profit margin of at least 10.4 percent by 2017 and boosting sales by 23 percent.

In diversified products operations, Yokohama said it would work to expand operations in automotive hoses and sealants and reinforcing the company’s strong market positions in marine hoses and pneumatic marine fenders.

Yokohama launched its ‘grand design 100’ plan in 2006. The plan comprises four three-year segments, each focused on one strategic theme.

Yokohama said the plan will include tire plant construction and expansion projects in North America, Russia, Europe and China.