Japanese tyre maker Yokohama has announced it will build a new passenger car tyre plant in China, located in the Qiantang New District of Hangzhou City, Zhejiang Province. The new facility will have an initial production capacity of 9 million tyres/year, with further expansion to be considered in the future. Planned capital investment is estimated at US$227 million, and production at the new plant is scheduled to start in the second quarter of 2026.
The decision to construct a new plant is a response to a request for relocation of the plant currently operated by Hangzhou Yokohama Tire – a local tyre production subsidiary, as part of an urban renewal project. The new plant will be constructed in another location in Qiantang and be operated by Hangzhou Qiantang Yokohama Tire, a new company established as part of the district, city and provincial governments’ project promoting foreign investments.
The new plant is the first being built under the ‘one-year plant’ challenge in the consumer tyre business’ growth strategy set forth in Yokohama’s new medium-term management plan, Yokohama Transformation 2026 (YX2026), which is being implemented during 2024-2026. This sees Yokohama aim to construct plants in just one year that achieve low-cost and efficient production and help the tyre maker adopt a strong competitive position in the local market. To that end, Yokohama will combine its accumulated know-how with that of local partner companies that have a proven track record in the local market.
To meet expected further increases in tyre demand in China, the new plant will increase Yokohama’s current annual production capacity in the country by 3 million units.
Its output will include tyres sold as original equipment for new energy vehicles (NEVs), including electric vehicles. In addition, the new plant aims to increase the sales ratio of high-value-added Yokohama tyres in China’s replacement tire market by increasing local production of high-inch tyres in the Advan global flagship brand and the Geolandar brand of tyres for SUVs and pickup trucks.