Yokohama will build a new plant in China
On July 1, Yokohama Rubber announced that it will build a passenger car tire plant in the new Qiantang district of Hangzhou City (Zhejiang Province, China), which will initially produce 9 million tires per year, with the possibility of expansion in the future. The planned investment is 1.96 billion yuan (250 million euros), and production is scheduled to start in the second quarter of 2026.
The company notes that the decision to build a new plant is related to the request of local authorities to relocate the existing production site of Hangzhou Yokohama Tire Co., Ltd. in accordance with the city's renovation plan. The new plant will be managed by Hangzhou Qiantang Yokohama Tire Co., Ltd., established under the conditions of the program to promote foreign investment.
The new enterprise will be the first built as part of the implementation of Yokohama's business development strategy in the consumer sector, which is part of the medium-term plan Yokohama Transformation 2026 (YX2026). According to the new strategy, Yokohama plans to build new plants in just one year, "creating low-cost and high-productive production, improving the company's competitiveness in regional markets." In Hangzhou, the company also intends to "combine accumulated know-how with the technologies of partners who have successful experience in the local market."
"In order to meet the expected demand for tires in China, the new plant will increase Yokohama Rubber's annual production capacity in the country by 3 million units, — the company says. — The range will include tires for vehicles using new energy sources (NEV), including electric vehicles. In addition, the new production is being created with the aim of increasing sales in the Chinese secondary market of high-value-added products, including large-diameter tires under the flagship brand ADVAN and models from the Geolandar family for SUVs and pickups."
Prior to the decision to build a new plant, Yokohama signed a strategic partnership agreement with Leapmotor - a NEV manufacturer based in Hangzhou, and in the future, the company intends to expand supplies for new-type vehicles.