Yokohama Tire Philippines, Inc. (YTPI) has begun constructing a new PHP3.5-billion manufacturing plant at the Clark Freeport Zone in Pampanga. The expansion aims to boost YTPI’s production capacity by 5%, equating to an additional 500,000 tires annually. Currently, YTPI, the sole tyre manufacturer in the Philippines, produces 10 million tires/year.
The company plans to export 94% of its increased output, with the remainder serving the local market. Additionally, the new plant is expected to create 500 new jobs for Filipinos.
During the groundbreaking ceremony, Department of Trade and Industry (DTI) Secretary Alfredo Pascual highlighted the Philippine government’s support for foreign investors like YTPI. Pascual recently met with executives from Yokohama Rubber Company Ltd., YTPI’s parent company, during the Philippine Economic Briefing in Tokyo. He emphasised the DTI’s goal to increase YTPI’s domestic rubber sourcing from the current 51% to 100%. This shift could result in an annual domestic sourcing of 30,000 tonnes of raw rubber, valued at around PHP1 billion, providing additional income for local farmers.
The expansion of YTPI’s operations underscores the benefits of the trilateral partnership between the Philippines, the US, and Japan. This collaboration is also instrumental in establishing the Luzon Economic Corridor, which includes the Clark Freeport Zone, to attract foreign investments.