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Manufacturing Facilities

Yokohama to build new tire plant in China

Matt RossBy Matt Ross5th July 20242 Mins Read
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Yokohama to acquire Goodyear’s OTR business

Japanese tire maker Yokohama has announced it will build a new passenger car tire plant in China, located in the Qiantang New District of Hangzhou City, Zhejiang Province. The new facility will have an initial annual production capacity of 9 million tires, with further expansion to be considered in the future. Planned capital investment is approximately ¥36.7bn (approximately US$227.6m), and production at the new plant is scheduled to start in the second quarter of 2026.

The decision to construct a new plant is a response to a request for relocation of the plant currently operated by Hangzhou Yokohama Tire – a local tire production subsidiary, as part of an urban renewal project. The new plant will be constructed in another location in Qiantang and be operated by Hangzhou Qiantang Yokohama Tire, a new company established as part of the district, city and provincial governments’ project promoting foreign investments.

The new plant is the first being built under the ‘one-year plant’ challenge in the consumer tire business’ growth strategy set forth in Yokohama’s new medium-term management plan, Yokohama Transformation 2026 (YX2026), which is being implemented during 2024-2026. This sees Yokohama aim to construct plants in just one year that achieve low-cost and efficient production and help the tire maker adopt a strong competitive position in the local market. To that end, Yokohama will combine its accumulated know-how with that of local partner companies that have a proven track record in the local market.

To meet expected further increases in tire demand in China, the new plant will increase Yokohama’s current annual production capacity in the country by 3 million units. Its output will include tires sold as original equipment for new energy vehicles (NEVs), including electric vehicles. In addition, the new plant aims to increase the sales ratio of high-value-added Yokohama tires in China’s replacement tire market by increasing local production of high-inch tires in the Advan global flagship brand and the Geolandar brand of tires for SUVs and pickup trucks.

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