Tokyo – Yokohama Rubber Co. Ltd is investing about Yen3.7 billion (almost €30 million) to expand production capacity for high-performance tires at its plant in Shinshiro City, the company has announced.
Construction of a new line for tires of 18-inch diameter tires and above is to start in May, with start-up slated for June 2017, according to a 12 Feb press release. The plant is scheduled to reach full capacity by the following April.
The project at the site in Aichi Prefecture will increase annual production capacity for high-performance tires there by about 20 percent from current levels.
The investment, said Yokogawa, is in response to growing demand for large tires, including as OE fitments on luxury sports cars and SUVs and in the global replacement market.
These markets can be highly profitable, with demand is growing more than ever, noted Yokohama – explaining the background to its investment decision.
The Shinshiro Plant has the largest annual production capacity for passenger car tires of any plant in the Yokohama group.
The Shinshiro Plant and nearby Shinshiro-Minami Plant can produce a combined total of 16.9 million tires a year, as of December 2015, the company said.