On December 16, 2024, Yokohama Rubber Co., Ltd. held a groundbreaking ceremony for its new passenger car tire plant in Hangzhou, China. The event was attended by local officials, including Hangzhou City Mayor Yao Gaoyuan, as well as Yokohama Rubber Chairman & CEO Masataka Yamaishi and President & COO Shinji Seimiya.
The groundbreaking ceremony marks the start of construction of the first plant being built under the “1-year plant” challenge in the consumer tire business’ growth strategy set forth in Yokohama Rubber’s medium-term management plan Yokohama Transformation 2026 (YX2026), which is being implemented during 2024–2026. Under the “1-year plant” challenge, Yokohama Rubber aims to construct plants in just one year that achieve low-cost and highly efficient production that will realize a strong competitive position in the local market. Toward that end, Yokohama Rubber will combine its accumulated know-how with that of local partner companies that have a proven track record in the local market.
In his opening remarks, Chairman & CEO Yamaishi thanked those involved in the plant’s construction and highlighted the plant as a significant growth opportunity, driven by China’s rapidly expanding automotive industry. He emphasized that the state-of-the-art plant, featuring the latest automation and digitalization technologies, will be operational in just one year, enabling Yokohama Rubber to swiftly meet local demand for high-quality tires and support regional development.
The new plant will replace another Yokohama Rubber plant currently operating in Hangzhou City, and the new plant will have an annual tire production capacity of 9 million tires, 3 million units greater than that of its predecessor in order to ensure that Yokohama Rubber can capture the expected increases in demand for passenger car tires in the Chinese market in the years ahead. Full-scale production is scheduled to start in the second quarter of 2026. The new plant will increase Yokohama Rubber’s local production of high-inch tires in the ADVAN global flagship brand and the GEOLANDAR brand of tires for SUVs and pickup trucks, with a focus on tires for new energy vehicles, which are expanding rapidly in China.
In addition to the “1-year plant” challenge, the consumer tire strategy in YX2026 aims to maximize the sales ratios of high-value-added tires by expanding sales of the ADVAN brand, the GEOLANDAR brand, winter tires, and 18-inch and larger tires. Yokohama Rubber also is implementing “Product and Regional Strategies” focused on strengthening the development, supply, and sale of tires that respond to specific trends in each regional market.
