Yokohama launches PHP 3.5 billion expansion, boosting local industry

The Department of Trade and Industry (DTI) Secretary Fred Pascual reiterated the Philippine government’s commitment to fostering a robust business environment for foreign investors during the groundbreaking ceremony for Yokohama Tire Philippines Inc.’s (YTPI) PHP 3.5 billion expansion project on July 29.

“The Philippine government, under the leadership of President Marcos Jr. and its vision of Bagong Pilipinas, is committed to supporting foreign investors like YTPI,” Secretary Pascual said.

Set to be operational by the second quarter of 2026, the expansion is expected to increase YTPI’s production capacity by 5%, generate 500 new jobs, and strengthen its position as a leading player in the tire manufacturing sector.

YTPI’s strategic partnership with the DTI, initiated in 2020, sources natural rubber from Mindanao, providing stable income for local farmers and processors while aiding the domestic rubber industry’s growth.

Currently, 54% of YTPI’s rubber needs are sourced locally, a figure expected to reach 100% by 2026, with an annual target of 30,000 metric tons valued at PHP 1 billion.

Commercial Counselor Dita Angara-Mathay, DTI Lead Officer in Japan, highlighted that the expansion reflects the progress of the country’s rubber industry development plan. This initiative promotes investments in rubber-based product production, creating a comprehensive value chain.

To attract more investments, the DTI has implemented policy reforms and established green lanes for strategic investments, fostering transformative infrastructure partnerships.

These efforts are supported by the recent Trilateral Summit among the Philippines, Japan, and the United States, which aims to boost foreign investment, particularly in the Luzon Economic Corridor.

Infrastructure developments in the region, such as the Subic-Clark-Manila-Batangas Railway System, the Clark International Airport expansion, and the Clark National Food Hub, will enhance the region’s appeal to international investors.

These projects are expected to benefit YTPI by improving infrastructure, connectivity, and logistical support, thereby streamlining operations and reducing costs.

“These developments are particularly significant for YTPI as you will benefit from improved infrastructure, enhanced connectivity, and expanded logistical support. The strategic investments in transportation and logistics will streamline operations, reduce costs, and improve the competitiveness of YTPI’s products within the country and in the global market,” said Secretary Pascual.

YTPI, a subsidiary of The Yokohama Rubber Co., Ltd., has seen substantial growth since its inception, increasing tire production from one million units in 1998 to nearly 10 million today.

The expansion underscores YTPI’s role as the largest tire producer in the Luzon Economic Corridor, poised to drive further growth with competitive, quality-driven, and innovative products.