With new $380 million facility and annual production capacity of 5 million tyres, Japanese tyre major aims to meet expected increase in demand in the North American market.
19 Mar 2024 | 2755 Views | By Autocar Professional Bureau
Yokohama Rubber Co has announced plans to build a passenger car tyre plant in Mexico to strengthen its capacity to supply tyres to the North American market. The new plant will have an annual production capacity of 5 million tyres, with planned capital investment totalling US$380 million.
Construction of ...
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Yokohama Rubber Co has announced plans to build a passenger car tyre plant in Mexico to strengthen its capacity to supply tyres to the North American market. The new plant will have an annual production capacity of 5 million tyres, with planned capital investment totalling US$380 million.
Construction of the new plant will start in the second quarter of 2024, and production is scheduled to start in the first quarter of 2027. The new plant will be built on a site with a total area of about 610,000 square metres, which will be able to accommodate future expansion.
Yokohama states that local production for local demand will be indispensable to rapidly meeting the expected increase in demand for tyres in the North American market. The new plant will be located in the Mexican state of Coahuila and will have access to a major railway line and expressway that will facilitate timely supply of tyres to customers throughout North America.
The company’s production capacity expansion strategy is part of the new three-year (2024–2026) medium-term management plan, Yokohama Transformation 2026 (YX2026). This is designed to maximise the sales ratios of high-value-added tyres by expanding sales of Yokohama’s global flagship Advan brand, the Geolandar brand of tyres for SUVs and pickup trucks, winter tyres, and 18-inch and larger tyres.
The company will also continue its product and regional strategies focused on strengthening the development, supply, and sales of tyres that respond to specific trends in each regional market.