Yokohama Tire Philippines Inc. (YTPI) bares plans to step up local sourcing of natural rubber to 100 percent by 2026 from 54 percent at present, increasing the company’s domestic rubber sourcing to almost P1 billion.
Department of Trade and Industry (DTI) Secretary Alfredo Pascual noted YTPI’s commitment to supporting the government’s initiatives to promote rural and agricultural development.
“From 1 million tires when they started, they are now producing over 9 million tires. And with the expansion, they will be producing more than 10 million tires. Part of that is going to be sold locally, but the bulk will be for the export market, which is also very good for the country. But for this to be meaningful, we want local raw material sourcing to be done by Yokohama,” Pascual said during the groundbreaking of the expansion project in Clark Freeport Zone Monday.
With the expansion, the tire company revealed plans to source up to 30,000 metric tons (MT) of rubber and manufacture over 10 million tires annually.
The expansion is expected to add 500 jobs, bringing total employment to 3,500, improve YTPI’s production capacity by 5 percent and strengthen the company’s position as a leading player in the tire manufacturing sector.
The company’s 2020 strategic partnership with the DTI to source natural rubber from Mindanao not only ensured a stable income for local farmers and rubber processors, but also contributed to the development of the domestic rubber industry.
Trade commercial counsellor to Tokyo Dita Angara-Mathay said YTPI’s investment expansion project would contribute to the progress of the country’s rubber industry development plan.
The program promotes active promotion of investments in rubber-based product production and create a comprehensive value chain, enhancing integration across the upstream, midstream and downstream sectors.
