Tire maker launches P3.5-B expansion bid

The P3.5-billion expansion project of Yokohama Tire Philippines Inc. (YTPI) at Clark Freeport Zone in Pampanga broke ground yesterday in a ceremony led by Trade and Industry Secretary Alfredo Pascual.

YTPI, a subsidiary of Japanese firm, The Yokohama Rubber Co., Ltd., targets an output of 10 million tires a year.

According to the Department of Trade and Industry, the YTPI expansion would produce 500 local jobs, adding to its present 3,000 workforce, as the facility marks a significant milestone in the company’s 28-year history in the country.

In his speech, Pascual said the new plant will be operational by the second quarter of 2026.

“Over the years, YTPI has consistently supplied trusted brands of passenger car radial and recreational vehicle tires throughout the Asia Pacific region, including the Philippines.”

“As the sole tire manufacturing company in the Philippines, YTPI has consistently set the industry standard, establishing a strong global presence,” Pascual said.

Since the start of its operation in 1996, YTPI has already produced 9 million tires from its 1 million tires when they started.

“And with the expansion, they will be producing more than 10 million tires. Part of that is going to be sold locally, but the bulk will be for the export market, which is also very good for the country. But for this to be meaningful, we want local raw material sourcing to be done by Yokohama,” Pascual said.

More than 50 percent of YTPI’s raw material requirement came from local sources, according to the Trade chief, hoping “they can further contribute to economic growth in the country by increasing the purchases of natural rubber from our producers, mostly in Mindanao.”

Solid pledge

“The YTPI’s commitment to the Philippines is even more profound. As I have said, they are buying natural rubber locally, and we at the DTI will help them to be able to source more of their natural rubber raw material from local sources,” Pascual stressed.

Further, Pascual underlined that the government, under the leadership of President Ferdinand Marcos Jr., under his vision of Bagong Pilipinas, is committed to supporting investors like YTPI.

The DTI, under the thrust of ANGAT Negosyo (or Elevating Enterprises and Entrepreneurs), is at the forefront of improving the ease of doing business by streamlining and digitalizing institutional systems and procedures.

He said the recent Trilateral Summit between the Philippines, Japan and the United States will significantly impact foreign investments in the Luzon Economic Corridor and beyond.

“This initiative highlights the Luzon Economic Corridor’s critical role in hosting the Philippines’ export manufacturing and high-tech industries.

In the Luzon Economic Corridor, three major projects are planned, the $3.2 billion Subic-Clark-Manila-Batangas Railway System that is set to link major ports and industrial zones by 2026; the $179 million expansion of Clark International Airport, also scheduled for completion in 2026; and the $152 million Clark National Food Hub, aimed at establishing regional leadership in agribusiness logistics by 2026,” the Trade chief said.