Yokohama Rubber Poised to Expand Tyre Manufacturing Capacity

Expansion of Production Capacity is anticipated to Increase Market Share of Yokohama in Japan Tyre Market

Yokohama Rubber is set to expand tyre production capacity at its Shinshiro plant for high performance tyres which are 18” or larger in diameter. The company has planned to start construction of the new line in May 2016, and begin tyre production in June 2017. The manufacturing facility is expected to reach its full capacity by April 2018. Total investment in the expansion plan is expected to be approximately USD33 million.

The planned expansion at Shinshiro plant is anticipated to ramp up the annual production for high performance tyres by about 20% of the current level.

Owing to greater acceptance of larger tyres in passenger vehicle which provide better movability along with stylish appearance, the company has decided to expand its production of high performance tyres. These tyres are also adopted by world’s leading automobile OEMs for SUVs and luxury sports cars which are gaining popularity across the globe.

The Shinshiro plant has the largest manufacturing capacity for passenger car tyres in the Yokohama group. The cumulative annual production capacity of Shinshiro and Shinshiro- Minami plant is approximately 16.9 million units, as of December 2015.

According to a recently published TechSci Research report, “Japan Tyre Market Forecast and Opportunities, 2020”, high vehicle ownership and increasing demand for better quality tyres would influence Japan tyre market over the next few years. Passenger car tyre market is the dominant segment in the country’s tyre market followed by light commercial vehicle tyre market and heavy commercial vehicle tyre market. Expansion of production capacity by Yokohama is forecast to increase its market share in the Japan tyre market.