Yokohama announces €60 million expansion plan for tire factory in the Philippines

Hiratsuka City – Yokohama Rubber Co., Ltd. (YRC) is investing 3.5 billion pesos (57 million euros) in a production plant in the Philippines to prepare for an expected increase in global demand.

The expansion will increase the Clark Special Economic Zone's production capacity by 5.8% to 32,500 tires per day, the Japanese tire manufacturer announced on January 24.

The project includes adding 21-inch and 22-inch tire sizes to the facility, as well as adding capacity for existing tire sizes.

Construction work is scheduled to begin in the second quarter of this year, and the new line is expected to be fully operational within two years.

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

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

The plant also supplies tires to some automakers in North America and Asia for use as OE on new vehicles.

YRC said the planned expansion will allow the group to “quickly respond” to the expected increase in global tire demand.

Additionally, the company aims to strengthen YTPI's profits by expanding production of “high value-added, high-inch tires.”