Production from the Prague facility, which is expected to be completed by June 2025, will be transferred to other YRC plants globally.

Key Takeaways:

• Yokohama Rubber is closing its Prague OHT plant due to operational inefficiencies June 2025.
• Production will be transferred to other YRC plants globally.

Yokohama Rubber Co announced on January 17 that it will close its Prague plant, operated by its subsidiary Yokohama TWS Czech Republic a.s., which specializes in the production of cross-ply off-highway tires (OHT).

This decision comes as Yokohama TWS, a major subsidiary of the YRC group, addresses the challenges facing the off-highway tire industry, including market cyclicality and evolving consumer demands. The company is implementing a strategic program aimed at enhancing efficiency, improving service levels, and ensuring long-term competitiveness.

The closure of the Prague plant, which has been operating for over 90 years, is part of this manufacturing optimization strategy. The plant's production of cross-ply tires faces persistent inefficiencies and relies on outdated technology.

Yokohama TWS is implementing a strategic program focused on three key areas. The company is investing heavily in research and development to create cutting-edge tire solutions that deliver exceptional performance while prioritizing sustainability and environmental responsibility.

Yokohama TWS is also strengthening its digital capabilities across all aspects of its business. This includes enhancing customer service through digital channels and leveraging technology to improve operational efficiency and streamline processes.

Finally, the company is streamlining its global manufacturing network to drive operational excellence. This includes optimizing production processes, improving resource utilization, and ensuring a sustainable level of profitability. While optimizing its manufacturing footprint, Yokohama TWS remains committed to its "local for local" strategy, aiming to serve local markets with locally produced products whenever possible.

Yokohama TWS will work closely with its partners, vendors, and other stakeholders to ensure a smooth transition during the plant closure. The company will also provide necessary support to the 270 employees affected by the closure.

YRC Group is a global leader in the tire industry, with a strong presence in passenger car radial tires (PCR), truck and bus radial tires (TBR), and OHT segments. The company aims to increase its market share in the OHT segment and has invested significantly in growth initiatives.

Despite the closure of the Prague plant, YRC remains committed to its global manufacturing footprint and will continue to invest in optimizing its production network to ensure long-term profitability and sustainability.