Yokohama Rubber Co. Ltd. (YRC) of Japan is investing another P3.5 billion to expand the capacity of its Clark Freeport-based tire plant.
The expansion, announced during the meeting between Clark Development Corp. (CDC) and Yokohama executives on Jan. 25, will boost daily tire output of Yokohama Tire Philippines Inc. (YTPl) by 1,800 tires to bring the total to 32,500.
CDC president and chief executive Agnes VST Devanadera underscored Clark’s reputation as a preferred investment destination.
“CDC remains steadfast in its commitment to ease of doing business conducive to growth and innovation. Our collective efforts have solidified Clark’s standing as a premier investment destination. Moreover, we welcome YTPI’s decision to expand within our vibrant Freeport,” she said.
Construction is scheduled to kick off in the second quarter of 2024, with full operational capacity anticipated by the second quarter of 2026, marking YTPI’s 30th anniversary.
YTPI is CDC’s second-largest exporter, boasting an impressive $387.43 million in exports as of Dec. 31, 2023. It also ranks among the top six employers in Clark, providing jobs for over 3,900 individuals.
Established in April 1996, the plant focuses on producing 13 to 20-inch tires for the global market, with the majority exported to Europe, North America and the ASEAN region primarily for replacement purposes.
The strategic expansion aims to propel YRC’s responsiveness to the burgeoning global tire demand, simultaneously strengthening YTPI’s financial standing through increased production of high-value-added, larger-sized tires.
YRC’s consumer tire business strategy centers on driving sales growth for its premium Yokohama tires such as the ADVAN and Geolandar brands by fortifying tire development, production, supply chain and sales operations across all regions.