Yokohama stops tyre production in Russia, donates over $400,000 to relief efforts

Japanese tyre manufacturer Yokohama is stopping production at its L.L.C. Yokohama R.P.Z. passenger car tyre factory in Lipetsk, Russia. Yokohama said it will “gradually stop production” in Russia “due to the current problem of raw material procurement”. The company will also donate more than $400,000 to humanitarian relief efforts.

Yokohama’s decision to halt production in Russia represents a significant shift from the company’s position at the start of March when the war in Ukraine was in its first week. Back then, the initial message from Yokohama was that there was no-change to production at its Lipetsk factory.

According to Yokohoma, the Lipetsk factory produces 1.6 million tyres a year, a 2.3-fold increase from the plant’s capacity when it began operation in 2012. However, while any factory closure is significant, halting production at Yokohama’s Russia location is unlikely to have a major impact on the Japanese tyremakers global production potential. Third-party research suggests the Lipetsk factory represents just 2 per cent of Yokohama’s global consumer tyre capacity. The Yokohama R.P.Z. passenger car tyre factory is situated roughly 10km south-east of Lipetsk, Russia and just a couple of kilometres away from steel cord manufacturer Bekaert’s Lipetsk location.

But the business impact is just one dimension of Yokohama’s response to the war in Ukraine, sanctions in Russia and the wider situation. The company has also consistently worked to mitigate the human impact. Writing in a statement published on 22 March 2022, company representatives said:

“We would like to express our deepest sympathies to those affected by the disaster and those facing emergencies in Ukraine and the surrounding areas. We would also like to express our deepest condolences to the victims.”

Indeed, the Yokohama Magokoro Fund, a social contribution fund made up of Yokohama Rubber Co. Ltd. and employees of Yokohama Rubber is supporting the Japanese Red Cross Society and the Japan UNESCO Association Federation in providing humanitarian support to the people of Ukraine. Specifically, Yokohama will donate a total of 50 million yen (£313,109; 375,842 euros; US$413,371).

“The Yokohama Rubber Group hopes that the situation in Russia and Ukraine will be resolved as soon as possible, and that the peace and security of the people will be ensured”, the statement concluded.