- Visakhapatnam Plant in India is currently under construction
- Decision for additional investments will double the plant’s future capacity for Yokohama Off-Highway Tires (YOHT)
- First stage of factory to start production in first quarter of 2023, second stage in first quarter of 2024
The Yokohama Rubber Co., Ltd. will invest in additional production capacity at the new Visakhapatnam Plant that currently is under construction in India.
With an additional investment of US$171 million, the new plant’s planned daily production capacity will be doubled. In the first stage, scheduled to begin in the first quarter of 2023, production capacity will reach 55 tons (rubber weight). The second stage with a production capacity of 123 tons is scheduled to start in the first quarter of 2024. Yokohama Off-Highway Tires (YOHT), a Yokohama Rubber Group company, is engaged in the manufacturing and sale of off-highway tires (OHT) for agriculture, forestry, construction and industrial machinery.
During January 2021, Yokohama Rubber consolidated its OHT business with that of the Alliance Tire Group (ATG), a Yokohama Group company specialising in OHT tires, to create a strong, integrated global OHT business under the name of YOHT. YOHT currently has two tire plants in India – the Dahej Plant in the state of Gujarat and the Tirunelveli Plant in Tamil Nadu – and a factory in Hadera, Israel. With Alliance, Galaxy and Primex, these plants produce three of the Group’s core off-highway tire brands.
As global demand for OHT is growing, Yokohama Rubber recently expanded capacity at the Dahej Plant and began the construction of the new Visakhapatnam Plant in the third quarter of 2020. In addition, the Company now decided to further expand the planned capacity of the new plant. The new plant is being built on a 390,000m2 site, which includes a recently acquired additional 70,000m2. The site has room for further capacity expansion in the future.
Yokohama Rubber’s medium-term management plan includes a commercial tire strategy that positions the Group’s OHT business as a future growth driver. The Group plans to expand its OHT business by capitalising on the strength of a multi-brand line-up that includes Yokohama, Alliance, Galaxy, Primex, and Aichi brand OHTs to develop new markets and meet diverse customer needs. At the same time, the group is increasing its production capacity to further accelerate the strengthening of its competitiveness in the global OHT market.