Yokohama moves to phase two of Grand Design plan

ERJ staff report (DS)

Tokyo-The Yokohama Rubber Co., Ltd. has moved into the second phase of its Grand Design 100 medium-term management plan. Grand Design 100, launched in April 2006, calls for achieving annual net sales of 1 trillion yen and annual operating income of 100 billion yen by the fiscal year to March 31, 2018, and it comprises four three-year segments. Phase II covers the three years to March 31, 2011.

The chief financial targets in Phase II are to raise net sales to 550 000 million yen (euro 4151 million), to raise operating income to 38.5 billion yen (7.0% of net sales), and to lay the groundwork for further growth by increasing free cash flow to more than 30 billion yen. Yokohama's defining policy for Phase II is quality growth.

Yokohama's tyre group is expected tol be the main source of the growth for Phase II. The company will concentrate on expanding its presence in the global marketplace, on expanding and upgrading production capacity to respond flexibly to market trends in different regions, and on integrating regional operations in support of increased globalisation.

Part of the plan is to set up a tyre factory in Russia during 2011, and another part is to re-start the temporarily suspended expansion project at the Hangzhou tyre Plant in China

Yokohama also intends to launch its range of 'green' tyres ("DNA dB super E-spec") to the North American and European markets and to increase OE sales of Advan brand tyres.

In the Multiple Business (diversified products) Group, Yokohama will concentrate on expanding business in high-pressure hoses; in conveyor belts; and in other products, such as marine hoses, and pneumatic marine fenders, in the global marketplace and asserting distinctive strengths in environmental technologies to develop business in renewable energies and in other new product sectors.

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Press release from Yokohama