Yokohama Rubber to Establish New Passenger Car Tire Factory in Mexico

Yokohama Rubber Co., Ltd., has unveiled its strategic initiative to establish a passenger car tire manufacturing facility in Mexico, signaling a pivotal step in augmenting its tire supply capacity for the North American market. This forthcoming plant is poised to showcase an impressive annual production capacity of 5 million tires, underpinned by an estimated capital investment amounting to US$380 million (roughly equivalent to ¥52.1 billion). The project is scheduled to kick off with the commencement of construction activities in the second quarter of 2024, with production slated to commence by the first quarter of 2027. Spanning across an expansive area encompassing approximately 610,000 square meters, the chosen site has been strategically identified to accommodate potential future expansions, indicative of Yokohama Rubber's forward-thinking approach.

The decision to embark on this endeavor underscores Yokohama Rubber's acute awareness of the pivotal role that localized production plays in swiftly responding to the anticipated surge in tire demand within the North American region. Hence, the company has opted to establish its new manufacturing facility in the Mexican state of Coahuila, strategically positioned to leverage convenient access to a critical railway line and an extensive expressway network. This strategic location is poised to facilitate seamless tire distribution to customers spanning across the expanse of North America.

In alignment with its consumer tire strategy outlined in the forthcoming three-year (2024–2026) medium-term management plan dubbed Yokohama Transformation 2026 (YX2026), Yokohama Rubber is geared towards optimizing its sales mix by fortifying the market share of high-value-added tires. This strategic thrust encompasses a concerted expansion drive for YOKOHAMA's prestigious ADVAN brand, alongside the GEOLANDAR series tailored to meet the specific requirements of SUVs and pickup trucks. Additionally, the company aims to bolster its foothold in the market for winter tires and tires sized 18 inches and above, further amplifying its product portfolio's breadth and depth. Moreover, Yokohama Rubber remains steadfast in its commitment to executing its "Product and Regional Strategies," which are strategically devised to enhance the development, supply, and sales of tires tailored to address distinct market trends prevalent across different regions. This comprehensive approach underscores Yokohama Rubber's unwavering dedication to delivering superior tire solutions tailored to meet the evolving needs and preferences of consumers worldwide.

Yokohama Rubber Company, Limited, headquartered in Tokyo, Japan, specializes in the manufacturing of tires and rims. Its inception dates back to October 13, 1917, when it was established through a collaboration between Yokohama Cable Manufacturing and B.F. Goodrich. Subsequently, in 1969, the company extended its operations to the United States under the name Yokohama Tire Corporation. Presently, Yokohama Rubber operates two manufacturing plants in the United States, situated in Salem, Virginia, and West Point, Mississippi.