Yokohama expands plant in the Philippines

Yokohama Rubber has begun expanding its subsidiary Yokohama Tire Philippines Inc. (YTPI) plant in Pampanga, according to the Philippine Department of Trade and Industry (DTI).

The project will invest around 3.5 billion pesos (60 million dollars), with new lines expected to be launched in the second quarter of 2026, and the plant's capacity will increase by 5% to 10.5 million tires per year, creating 500 new jobs.

The DTI said that in 2020, they agreed with YTPI to purchase natural rubber in Mindanao, which not only provided a stable income for local farmers and rubber processors but also contributed to the development of the domestic rubber industry. Currently, the company purchases around 54% of its natural rubber domestically, and by 2026, it plans to switch to locally produced rubber entirely, increasing annual deliveries to 30,000 tons or 1 billion pesos (17 million dollars).

DTI Trade Secretary Dita Angara-Mathay noted that Yokohama's investment project demonstrates progress in implementing the plan to develop the rubber and rubber products industry, launched by the Philippine authorities. The country has taken measures to attract foreign investors, such as creating "green corridors," which have already led to several partnerships in the infrastructure sector. It is also expected that the recent trilateral summit between the Philippines, Japan, and the United States will help increase foreign investment, primarily in the rubber industry, within the Luzon Economic Corridor.

Yokohama has been present in the Philippines for 28 years, and from 1998 to 2024, YTPI's capacity has increased from 1 million to 10 million tires for passenger cars and SUVs per year.