Leading Japanese tire manufacturer Yokohama Rubber Co. Ltd. disclosed plans to expand production operations in the Philippines.
Trade Secretary Alfredo Pascual said the tire manufacturer expressed its commitment to expansion during the final day of the three-day Philippine Economic Briefing in Tokyo on June 19 to 21, 2023.
“The Philippines is dedicated to enhancing its investment climate through various policy reforms and infrastructure development. Our ongoing efforts aim to attract more foreign investments, which are crucial for sustaining our economic growth and development,” Pascual said.
He noted Yokohama’s contributions to the local economy, particularly through the localization of natural rubber procurement, which significantly benefited Filipino farmers and rubber processors in Mindanao.
The Philippines committed to address issues raised by tire company, including VAT incentives, power infrastructure and labor issues.
The Philippines-Japan economic relationship remains one of the strongest in Asia, with Japan being the Philippines’ second-largest trading partner and third-largest source of approved investments in 2023.
“Yokohama Rubber’s expansion plans in the Philippines are a testament to the robust economic partnership between our countries and the confidence Japanese investors have in the Philippines,” Pascual said.
The DTI said it woulf continue to work closely with Japanese partners to ensure a stable and competitive business environment in the Philippines.
Yokohama operates in the Philippines through wholly-owned subsidiary Yokohama Tire Philippines Inc. The tire company has been operating in the Philippines for nearly two decades.