Yokohama to Invest $380 Million in Mexico to Build New Tire Plant

18/03/2024 - 17:55 | Car news | IAB Team

Yokohama has revealed its intention to construct a passenger car tire manufacturing facility in Mexico, a move aimed at augmenting its ability to cater to the demands of the North American market.

Yokohama Tire

The upcoming plant is slated to boast an annual production capacity of 5 million tires, with a projected capital investment totaling US$380 million. Groundbreaking for the new facility is set to commence in the second quarter of 2024, with production earmarked to commence in the first quarter of 2027. Spanning approximately 610,000 square meters, the site has been meticulously selected to accommodate future expansion endeavors.

Recognizing the imperative of local production to meet the escalating demand for tires in North America, Yokohama has chosen the Mexican state of Coahuila as the site for its new plant. Situated strategically, the facility will enjoy seamless access to a major railway line and expressway, facilitating the timely distribution of tires to customers across the continent.

This strategic initiative dovetails seamlessly with Yokohama's overarching consumer tire strategy outlined in its new three-year (2024–2026) medium-term management plan, Yokohama Transformation 2026 (YX2026). Central to this strategy is the optimization of sales ratios for high-value-added tires, including the expansion of flagship brands such as ADVAN and GEOLANDAR, tailored for SUVs, pickup trucks, winter conditions, and tires sized 18 inches and above. Additionally, the company remains steadfast in its commitment to "Product and Regional Strategies," aimed at bolstering the development, supply, and sales of tires tailored to the unique demands of various regional markets.

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