Yokohama to expand car tyre production capacity in Philippines

Yokohama will expand the production capacity of Yokohama Tire Philippines, Inc. (YTPI), by 1,800 tyres per day with an investment of 3.5 billion pesos (£48.884 million; 57.108 million; $62.226 million; 8.4 billion yen). As a result, the annual production capacity for the plant will reach nearly 12 million – YTPI states the daily capacity will be 32,500. The capacity increases will also be joined by an expanded size lineup at the top end of its size range. 21 and 22-inch tyres, sizes associated with performance cars and SUVs, will be added to the 13-20 inch range already produced at YTPI. Established in April 1996, YTPI manufactures Yokohama tyres primarily for export to the global market.

The majority of YTPI’s output is shipped to Europe, North America, and the ASEAN region for the replacement tyre markets. The remainder is shipped to auto makers in North America and Asia for use as original equipment on new cars. Yokohama said its planned expansion will enhance its ability to respond rapidly to an expected increase in global tyre demand.

The move into higher rim diameter tyre sizes, in line with Yokohama’s corporate strategy for the PCR tyre market, will also strengthen YTPI’s earnings by expanding its production of high-value-added products. Expansion work is set to commence in the second quarter of 2024, and the new lines are expected to be fully operational from the second quarter of 2026 when YTPI marks its 30^th founding anniversary.

As previously mentioned, Yokohama wants to increase sales of high-value-added Yokohama branded tyres as the key pillar of its consumer tyre business strategy. These include the global flagship Advan ultra-high performance tyre brand, and the Geolandar brand for SUVs and pickup trucks, winter tyres, and 18” and larger tyres. The manufacturer plans to strengthen its tyre development, production, supply, and sales operations in each region to support its effort to expand sales of tyres tailored to meet the specific needs of each market.

For many years Europe has been the main export destination for tyres produced at Yokohama Tire Philippines, as this 2015 internal data demonstrates (Chart: Yokohama)