Yokohama unveils €60m expansion plan at Philippines tire factory

Hiratsuka, Japan – Yokohama Rubber Co. (YRC) is investing PHP3.5 billion (€57 million) in its production plant in The Philippines to prepare for an anticipated increase in global demand.

The expansion will increase production capacity at the ‘Clark special economic zone’ by 5.8% to 32,500 tires per day, the Japanese tire maker announced 24 Jan.

The project will include adding capacity for the existing tire sizes as well as introducing 21- and 22-inch tire sizes at the facility.

With construction work set to start in the second quarter of the year, the new lines are expected to be fully operational in two years.

Established in April 1996, Yokohama Tire Philippines, Inc. (YTPI) has been manufacturing Yokohama tires primarily for export to the global market.

The factory currently produces 13-20 inch tires for passenger cars and SUVs, with the majority of its output being shipped to Europe, North America, and the ASEAN region for use as replacement tires.

The factory also supplies tires to some car makers in North America and Asia for use as OE on new cars.

The planned expansion, YRC said, will enable the group to “rapidly respond” to an expected increase in global tire demand.

It will also strengthen YTPI’s earnings by expanding its production of “high-value-added, high-inch tire sizes.”