Rubber firm to expand operations in Clark

ednesday, February 2, 2011

CLARK FREEPORT – The Yokohama Rubber Company, Limited (YRCL), has bared plans for an increased 10-million-tire yearly production capacity for Yokohama Tire Philippines Inc. (YTPI), a local passenger-car tire manufacturing and sales company located inside this Freeport Zone.

YTPI in Clark is currently producing 7 million tires yearly since its operation started in 1996.

The tire manufacturing firm’s expansion project would commence after Clark Development Corporation (CDC) approved the construction of the new tire plant this February.

The company plans to start operation in its expansion facilities by 2013, making the area fully operational in 2014.

The YRCL investment in the first-phase expansion was pegged at 20 billion yen and the rubber tire firm plans to increase its annual production capacity to 13 million tires yearly in 2014, and 17 million tires by 2017, with a total investment of about 50 billion yen.

The purpose of enhancing YTPI’s production capacity is to implement business plans set in the third phase of the Grand Design 100, the company’s medium-term management plan, to be started in 2012.

Most of the tires to be produced at the new plant are for export to North American markets.

The new tenancy contract for 300,000 square meters gives the YTPI a total plant area of 460,000 square meters, 2.8 times bigger than its current area.

Established in 1996 as the manufacturing base for passenger-car tires for export markets in Clark, the YTPI is currently manufacturing tires with internal diameters from 13 to 18 inches for passenger cars and sports utility vehicles (SUVs).

Most of the tires are being exported to Europe, North America and Asean countries.

The tires are also delivered to car manufacturers in countries in North America and Asia.

As a result of previous 3-step expansions, the TYPI had difficulty increasing production within the current plant area.

At present, Yokohama Rubber is expanding the production capacities at Shinshiro-Minami Plant in Japan; Hangzhou Yokohama Tire Co., Ltd, in China; Yokohama Rubber Manufacturing (Thailand) Co., Ltd.; and the Yokohama Tire Corporation in the United States.

The company is also working on the construction of a tire plant in Russia for its planned operation, which will end in March 2012.

These expansion programs are expected to give the Yokohama Rubber group a total tire production capacity of 60 million tires a year. (Reynaldo G. Navales)

Source:http://www.sunstar.com.ph/pampanga/local-news/rubber-firm-expand-operations-clark

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