Japanese tire maker starts expansion in Clark
CITY OF SAN FERNANDO, Pampanga — The president of Japanese tire maker Yokohama Rubber Co. (YRC) on Monday led its Philippine subsidiary in starting a 50-billion yen (P27 billion) expansion at the Clark Freeport.
The groundbreaking for the plant expansion of Yokohama Tire Philippines Inc. (YTPI) came more than two months after northern Japan was devastated by a magnitude 9 earthquake and tsunami that wiped out communities and killed thousands of people.
While Tadanobu Nagumo, YRC president, did not refer to the earthquake and tsunami that hit his country, he spoke of excitement over what he called as “a remarkable event.”
“This is the start of our dream to become a corporation that will bring new waves of change to the tire industry as we move along our blueprint for success, the Grand Design 100,” Nagumo told an audience of business leaders and officials led by Budget Secretary Florencio Abad.
“Grand Design 100” is the company’s medium-term management plan.
Monday’s event confirmed that YTPI was proceeding with what Nagumo called the biggest expansion funding by YRC.
By 2017, he said the total manufacturing plant area would cover 460,000 square meters or about three times its current area, its work force growing to 5,000 and production capacity increasing to 17 million tires yearly.
“This expansion program is a vital part of the Yokohama Rubber Group to increase production capacity to meet the demands of customers worldwide and to get ready for stiffer competition,” Nagumo said, referring to the American market.
He said YRC’s decision to invest in the Philippines, through Clark in 1996, was “one of the best decisions we have made so far.”
“[It] is currently, and will continue to be, a strong force in the Yokohama Rubber Group,” he added.
Nagumo attributed YTPI’s success to the support of its workers, the business sector, Clark Development Corp. and local communities.
YTPI makes an average of seven million tires yearly or 21,000 tires daily, said Tetsuya Kuze, YTPI president.
