TOKYO (July 30, 2009)—Yokohama Rubber Co. Ltd. is expanding its Hangzhou Yokohama Tire Co. Ltd. passenger tire plant again, this time investing $31.5 million over 18 months to boost annual capacity 37 percent to 4.1 million units.
Yokohama said the expansion is necessary to keep pace with expanding Chinese demand for tires, both on the replacement and OE levels.
Yokohama called the project at the six-year-old Hangzhou plant a Phase IV expansion, following expansion projects carried out in 2003, 2005 and 2008.
The expansion will occupy the last remaining open space at the site, meaning the firm can't expand the plant anymore. Yokohama did not quantify the size of the physical expansion; the plant covers more than 1.4 million square feet now.
Yokohama also makes radial truck tires at its Suzhou Yokohama Tire Co. Ltd. in Suzhou City.