Japanese tire firm to invest P3.5B in Clark Freeport expansion
Entrance to the Clark Freeport Zone (FILE PHOTO)
MABALACAT CITY, Pampanga, Philippines — The Tokyo-based Yokohama Rubber Co., Ltd. is set to invest some P3.5 billion to expand the operation of its subsidiary, Yokohama Tire Philippines, Inc. (YTPI), in the Clark Freeport Zone.
In a statement on Wednesday, Feb. 7, the Clark Development Corporation (CDC) said the expansion would result in YTPI’s production of an additional 1,800 tires per day.
The company’s plant currently produces some 30,700 tires daily.
Lawyer Agnes Devanadera, CDC president and chief executive officer, said upon completion of the expansion project, YTPI would be able to produce some 32,500 tires per day.
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She said CDC learned about this development during a meeting with YTPI’s officials last month.
Devanadera said the Japanese tire manufacturer’s decision to expand its production capability in Clark is proof that the free port remains a preferred investment destination among international companies.
“CDC remains steadfast in its commitment to ease doing business conducive to growth and innovation. Our collective efforts have solidified Clark’s standing as a premier investment destination. Moreover, we welcome YTPI’s decision to expand within our vibrant Freeport,” she said.
The CDC said YTPI’s expansion project includes a new production line for 21- and 22-inch tires.
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Quoting Yokohama Rubber Company, the CDC said the expansion project would begin in the second quarter of 2024 and would be completed and fully operational in two years.
The state-owned corporation disclosed that YTPI is among the companies with high performance in Clark Freeport.
“As of December 31, 2023, CDC’s Investment Promotions Division reported that YTPI ranks as the second-highest exporter with $387.43 million and stands among the top six employers, employing 3,901 individuals in this Freeport,” it said.
Established in April 1996, the YTPl produces 13- to 20-inch tires for global export, with the majority of its products shipped to Europe, North America, and the ASEAN region.
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“The expansion aims to enhance YRC’s responsiveness to global tire demand, strengthening YTPl’s earnings through increased production of high-value-added, large-sized tires,” the CDC said.
Yokohama Tire Company’s products include Advan and Geolandar lines for cars, sports utility vehicles, and other types of vehicles.
