Yokohama Rubber to build a new passenger car tyre plant in China

Yokohama Rubber Co., Ltd. has announced the construction of a new passenger car tyre plant in China. The plant will be located in the Qiantang New District of Hangzhou City, Zhejiang Province. This new facility is set to have an initial annual production capacity of 9 million tyres, with future expansion under consideration. The planned capital investment for this project stands at RMB1,960 million (approximately ¥36.7 billion), with production scheduled to commence in the second quarter of 2026.

Yokohama Rubber to build a new passenger car tyre plant in China
Yokohama Rubber to build a new passenger car tire plant in China
July 1, 2024

Relocation and New Management

The decision to build this new plant follows a request to relocate the current plant operated by Hangzhou Yokohama Tire Co., Ltd., necessitated by an urban renewal project. The new plant will also be situated in Qiantang and managed by the newly established Hangzhou Qiantang Yokohama Tire Co., Ltd. This aligns with the district, city, and provincial governments' efforts to promote foreign investments.

The "1-Year Plant" Challenge

This plant is the first to be constructed under Yokohama Rubber's “1-year plant” challenge, a part of its new medium-term management plan, Yokohama Transformation 2026 (YX2026). The “1-year plant” challenge aims to build facilities in just one year, leveraging Yokohama Rubber's extensive know-how and the expertise of local partners to achieve low-cost, highly efficient production. This approach is designed to strengthen Yokohama Rubber's competitive edge in the local market.

Production Capacity and Market Expansion

The new plant is expected to increase Yokohama Rubber's current annual production capacity in China by 3 million units to meet the rising demand for tyres in the country. It will produce tyres for original equipment on new energy vehicles (NEVs), including electric vehicles (EVs). The plant aims to increase the sales ratio of high-value Yokohama tyres in China’s replacement tyre market. This includes increased local production of high-inch tyres under the ADVAN global flagship brand and the GEOLANDAR brand for SUVs and pickup trucks.

Strategic Alliances

In preparation for this expansion, Yokohama Rubber, with support from the Hangzhou Municipal Government, signed a strategic alliance with LEAPMOTOR, a leading NEV manufacturer in Hangzhou. This partnership will enable Yokohama Rubber to enhance its supply of tyres for NEVs and strengthen its relationships with NEV automakers.

Consumer Tyre Strategy

The consumer tyre strategy within YX2026 focuses on maximising sales of high-value-added tyres by expanding sales of the ADVAN and GEOLANDAR brands, winter tyres, and tyres of 18 inches and larger. Additionally, YX2026 incorporates “Product and Regional Strategies” aimed at developing, supplying, and selling tyres tailored to specific regional market trends.

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