Yokohama Rubber announced it will spend about $125 million through 2015 to increase output at its tire plants in the Philippines and Russia.
The Japanese tiremaker will invest $118 million through 2015 at a plant about 40 miles from Manila, Philippines, operated by Yokohama Tire Philippines. The plant’s capacity will rise by 25 percent to 12.5 million passenger and light truck tires by the end of 2014, Yokohama said.
According to the tire manufacturer, the capacity is slightly smaller than originally projected two years ago, as the product mix will be more orientated to larger-diameter, higher value-added tires in order to meet changing market demands.
The Philippines factory opened in 1996 and can make tires up to 18 inches rim diameter. After the expansion, the site will be able to make tires up to 20 inches rim diameter. Most of the tires made in the Philippines are destined for export to North America, Europe and Southeast Asia. To accommodate the expansions, the company has more than doubled the size of the plant’s site area to 113 acres.
In Russia, Yokohama plans to invest $5.5 million to expand capacity at its Lipetsk plant to 1.6 million units annually to help meet domestic demand, estimated at about 3 million units annually.
by Dan Mihalascu
) - Friday, February 15th, 2013 - filed under Industry
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