Yokohama completes Trelleborg Wheel Systems acquisition, Yokohama TWS launched

As of today (2 May 2023) The Yokohama Rubber Co. Ltd. has completed the acquisition of Trelleborg Wheel Systems Holding AB (TWS), the Swedish off-highway tyre (OHT) manufacturer, news of which we broke on 14 December 2021 and was confirmed three months later on 25 March 2022. Following the successful completion of regulatory requirements, the combined business will now be known as Yokohama TWS and Yokohama Rubber’s consolidated accounts will include TWS business from the second quarter of the 2023 financial year.

The acquisition will bring Yokohama Rubbers’s consumer tyre:commercial tyre sales ratio in line with the global tyre market ratio of 1:1, according to the company. Prior to the acquisition, Yokohama’s consumer tyre:commercial tyre sales ratio was 2:1 ratio weighted toward consumer tyres. In addition, officials say the acquisition will “lead to further growth of Yokohama Rubber’s OHT business through synergies generated by the combined strengths of both companies in all areas, from the development of new products and services to manufacturing, sales, quality control, and sustainability.”

Masataka Yamaishi, Yokohama Rubber president and chairman of the board commented: “The acquisition fits perfectly with our medium-term management plan, YX2023. TWS’s wide range of products and brand portfolio, global sales and manufacturing footprint, service scheme, leading technology, and skilled people will enable us to consolidate our position among the top tire producers in the world, moving up in the rankings of the world’s largest tire producers. We warmly welcome the successful team from TWS into the Yokohama Rubber Group and are excited to work together in the future.”

Trelleborg AB president and CEO, Peter Nilsson, added: “TWS has during the past few years more than doubled in size and substantially increased its profitability. Today the business is in great shape. There is an ongoing consolidation in the OHT sector, and TWS will be a valuable complement to Yokohama Rubber’s existing offering in a multiple of dimensions. I would like to extend a big and heartfelt thank you to all employees in TWS and wish them and Yokohama Rubber every success in their new corporate constellation.”

Headquartered in Sweden, Trelleborg Wheel Systems Holding AB reported net sales: 13,277 million Swedish krona (approx. ¥172.5 billion) in 2022. The company is valued at 2,074 million euros, according to Yokohama.

The business runs 14 factories, 1 each in: Italy, Latvia, Serbian and Slovenia; 3 in the Czech Republic; 2 in Sri Lanka; 2 in China; 2 in the U.S. and 1 in Brazil. TWS has 40 sales offices worldwide and employed 6,621 at the end of December 2022.

Yokohama TWS is born

From now on, TWS will officially be part of The Yokohama Rubber Co., Ltd., operating under the name “Yokohama TWS” as a new company. For their part, the Yokohama TWS team commented that the acquisition enables The Yokohama Rubber Co. Ltd. to “consolidate its leading position among tyre producers in the world, becoming a global leader in the off-highway tyres segment with the addition of Trelleborg, Mitas, Maximo, Cultor brands and Interfit service network to its portfolio.”

Paolo Pompei, former president of Trelleborg Wheel Systems and current president and CEO of Yokohama TWS, said: “Today we are closing a successful chapter in our history with the Trelleborg Group and opening a new page with a leading player in the tire industry, sharing our values and vision for the future.

“Over the last few years, we have delivered continuous business growth combining strategic acquisitions with dedicated investments, and this has allowed us to build a strong and sustainable platform supported by a global manufacturing footprint, innovative products and solutions and an extensive sales network in close proximity to our customers.

“I’m extremely proud of what the TWS team has been able to achieve so far and we are all honoured that Yokohama has decided to invest in us, building together with their existing business, a new leading player in the off-highway segment”.

But while TWS will now be known by the new Yokohama TWS name, executives were quick to point out that the same “high quality products, solutions, and level of service” and the same organizational structure will remain.