YOKOHAMA announced today that it will build a passenger car tyre plant in Mexico to strengthen its capacity to supply tyres to the North American market. The new plant will have an annual production capacity of 5 million tyres, with planned capital investment totalling US$380 million (approx. ¥52.1 billion). Construction of the new plant will start in the second quarter of 2024, and production is scheduled to start in the first quarter of 2027. The new plant will be built on a site with a total area of about 610,000 square meters, which will be able to accommodate future expansion.

The Company recognizes that local production for local demand will be indispensable to rapidly meeting the expected increase in demand for tyres in the North American market. The new plant will be located in the Mexican state of Coahuila and will have access to a major railway line and expressway that will facilitate timely supply of tyres to customers throughout North America.

The consumer tyre strategy in YOKOHAMA’s new three-year (2024-2026) medium-term management plan, Yokohama Transformation 2026 (YX2026), aims to maximize the sales ratios of high-value-added tyres by expanding sales of YOKOHAMA’s global flagship ADVAN brand, the GEOLANDAR brand of tyres for SUVs and pick-up trucks, winter tyres, and 18-inch and larger tyres. It also will continue its “Product and Regional Strategies” focused on strengthening the development, supply, and sales of tyres that respond to specific trends in each regional market.

[Outline of new plant]