HIRATSUKA, Japan—Yokohama Rubber Co. Ltd. plans to relocate a passenger car tire plant in Hangzhou, China, operated by a local subsidiary, to a new plant in the same city.
The $227 million plant (¥36.7 billion)—to be located in the Qiantang New District of Hangzhou City, Zhejiang Province—is expected to begin production in the second quarter of 2026 and will have an initial annual production capacity of 9 million tires, with consideration for future expansions.
The decision to relocate the plant comes at the request of Hangzhou Yokohama Tire Co. Ltd., a local tire production subsidiary, as part of an urban renewal project, Yokohama said July 1. The new plant will be operated by Hangzhou Qiantang Yokohama Tire Co. Ltd., a new subsidiary being established as part of the district, city and provincial governments' project promoting foreign investments.
Tomoyuki Okuno, former president of Hangzhou Yokohama Tire, will lead the new subsidiary as of July 1.
This is the first plant being built under Yokohama's "1-year plant" challenge, part of the company's growth strategy, Yokohama Transformation 2026 (YX2026).
As part of this challenge, Yokohama aims to construct plants in just one year that achieve low-cost and highly efficient production "that will realize a strong competitive position in the local market," the tire maker said.
With the new plant Yokohama plans to meet increasing tire demand in China by increasing its current annual production capacity by 3 million units, targeting original equipment for new energy vehicles (NEVs), including electric vehicles. Yokohama also anticipates increasing the company's sales ratio of high value-added tires in China's replacement market by increasing local production of its Advan and Geolander brands.
Yokohama also entered a "strategic alliance" with Leapmotor, an NEV production and sales company in Hangzhou, to supply tires. The tire maker said it plans to further expand its supply of tires for NEVs and strengthen its relationships with NEV auto makers.
