Yokohama closes tire plant in Israel

Yokohama Rubber has announced its decision to close the Alliance Tire plant in Hadera (Israel), which is one of the company's more than 30 production sites and has been in operation for over 70 years. Production will be halted on December 31, 2024.

As noted by Yokohama, in recent years, major tire manufacturers have established new facilities in South Asia, locating them closer to primary raw material sources and taking advantage of the availability of cheap labor, making production in Israel non-competitive in terms of costs compared to Asian enterprises. Additionally, "the revitalized export routes passing through South Asian countries have reduced the costs of delivering products to key markets, further undermining Israel's competitive advantages".

The company adds that "given the current market situation and structural shifts in the tire industry, the company must take measures to return the business to a sustainable level of profitability and its future development. Consequently, the consolidation of production capacities in accordance with market conditions appears inevitable".

The Hadera plant, which opened in 1950, was acquired by Yokohama in 2016 along with the Alliance Tire Group (ATG), which produces tires for agricultural and other specialized equipment. As of August 2024, the plant employed 474 people.

Yokohama says that in the future, it plans to increase its share of the global OTR tire market and has made corresponding investments. Currently, the company, as stated in the statement, is already the world's leading manufacturer of agricultural tires and ranks second in the segment of tires for industrial equipment.

In November 2024, two other major tire companies announced the closure of plants. Michelin announced that it would halt production at two facilities in France, and Sumitomo decided to close a plant in the USA.

Photo: walla.co.il.