SALTILLO, Mexico— Yokohama Rubber Co. Ltd. long has pondered adding more tire capacity in North America.
Yokohama paving the path for growth in North America
Now those thoughts are on their way to becoming reality as the Japanese tire and rubber product maker broke ground April 15 on a new factory to build passenger and light truck tires in the Alianza Industrial Park in Saltillo.
Yokohama plans to spend $380 million on the project, which will be built on a 150-acre site with operations projected to begin in the first part of 2027. The state-of-the-art manufacturing facility eventually will have capacity for about 5 million tires annually, the majority of which will be above 18 inches in diameter. The move will expand its North American P/LT capacity by about 75 percent.
"The idea of a capacity expansion in North America has been on the table for some time, as we are constantly evaluating our global production equilibrium," Jeff Barna, president and CEO of Yokohama Tire Corp., the North American arm of YRC, told Rubber News in an email interview.
But this specific project—including site selection and production planning—did not kick off in earnest until late 2022 or early 2023, he added.
Mexico was chosen as the site based on a variety of factors, including geography, employment resources, investment costs, incentives, community support and regional importance.
That support was out in abundance during the groundbreaking event, with a host of state and local officials in attendance, as well as a contingent of management from Yokohama companies, including YRC Chairman and CEO Masatak Yamishi and Shinichi Takimoto, CEO of Yokohama North America, along with Barna.
"Honestly, this new plant is a celebration and recognition of the best employees and customers in the world," Barna said. "Without their collective commitment, resolve and devotion to the Yokohama brand, we would not be here today."

And the project will be in support of Yokohama's goals in North America, which are significant, according to Barna.
"The role of local production for local consumption cannot be understated as this is more than just a strategic market for us; it has been and is expected to be a driver of growth," he said. "More than that though, this market is defined by discerning customers who demand excellence, reliability and value.
"Proximity plays a pivotal role in meeting the needs of our customers efficiently and effectively," Barna said. "With the establishment of this factory, we are not only bringing our products closer to our local customers, but also enhancing the quality and accessibility of our offerings."
Located in the Mexican state of Coahuila, Yokohama said the factory will have access to a major railway line and expressway that will facilitate timely supply of tires to customers throughout North America.

YRC's consumer tire strategy in its 2024-26 medium-term management plan aims to maximize the sales ratios of high-value-added tires by expanding sales of Yokohama's global flagship Advan brand, the Geolander brand of tires for SUVs and pickup trucks, winter tires, and 18-inch and larger tires.
It also will continue its "Product and Regional Strategies" focused on strengthening the development, supply and sales of tires that respond to specific trends in each regional market.
Barna said the immediate plan is that the tires produced in Mexico will serve the North American market, though exports to other regions will be considered in the future.
When the Saltillo plant comes online it will be the tire maker's third on the continent. Yokohama operates a P/LT plant in Salem, Va., and truck/bus plant in West Point, Miss.
The Salem plant has an annual capacity of about 6.5 million units per year.
The West Point plant, producing truck/bus tires, has a capacity of around 750,000 tires per year.
And Barna said the Salem plant, which opened in 1968 and became part of Yokohama in 1989 when the firm purchased Mohawk Rubber Co., won't be impacted by the building of the new tire facility.

"This is an expansion of production capacity for the region to support both our North American and global growth plans," the Yokohama executive said. "We are relying on (the Salem plant) to continue to produce high quality tires for use in our market and contribute to these goals."
Yokohama's business in North America has been strong, outpacing the market, according to Barna. "This is true in both our consumer and commercial divisions. This repeated and sustainable success," he said, "was a key factor in securing the investment capital and establishing additional production in the region."
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There are several, interconnected reasons Yokohama has seen strong performance on the continent.
"First, our product offering has undergone a transformation with more new products being introduced more often, affording us access to new markets and customers," Barna said. "In other words, incremental offerings beyond normally scheduled replacements or product lifecycle activities."
The second, the executive said, is the staff Yokohama has in North America.
"We have an extraordinarily engaged, passionate and—perhaps most importantly—empowered work force that has not only the desire, but the ability to be proactive in the marketplace," he said. "Finally, that empowered and engaged spirit within our sales organization has translated to deep relationships and an unprecedented level of trust with really strong customer partners."
Yokohama also has a significant ag tire presence through its $2.3 billion purchase of Trelleborg Wheel Systems, a deal completed in May 2023 that also brought a significant footprint in North America. Yokohama TWS now operates an ag tire plant in Spartanburg, S.C., and a Mitas-branded ag tire facility in Charles City, Iowa.
The capacity of the Spartanburg factory is unknown, while the Mitas plant has a rated capacity of 13,500 units a year.
With global tire sales of around $5.7 billion in 2022, Yokohama is the eighth largest tire maker worldwide, according to Rubber News' Global Tire Report.
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