Skip to main content
Sister Publication Links
  • Rubber News
  • European Rubber Journal
Subscribe
  • Login
  • Register
  • Subscribe
  • Current Issue
  • News
    • OPINION
    • BUSINESS/FINANCIAL
    • COMMERCIAL TIRE
    • GOVERNMENT & LAW
    • Humanitarian Award
    • RETAIL TIRES
    • SERVICE ZONE
    • TIRE MAKERS
    • Best Places to Work
    • Mid-Year Report 2022
    • RUSSIA WAR IN UKRAINE
  • Aligning with ADAS
  • Data
    • DATA STORE
  • Custom
    • SPONSORED CONTENT
  • Events
    • ASK THE EXPERT
    • LIVESTREAMS
    • WEBINARS
    • SEMA LIVESTREAMS
    • RUBBER NEWS EVENTS
  • Resources
    • DIRECTORY
    • CLASSIFIEDS
    • SHOP FLOOR
    • AWARDS
    • BALANCING
    • DEMOUNTING
    • SAFETY
    • TIRE REPAIR
    • TPMS
    • TRAINING
    • VEHICLE LIFTING
    • WHEEL TORQUE
    • Best Places to Work
  • ADVERTISE
  • DIGITAL EDITION
MENU
Breadcrumb
  1. Home
  2. Latin America English
August 18, 2016 02:00 AM

Yokohama considering U.S., Mexico for new plant

Special to Tire Business
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print

    By Stephen Downer, Special to Tire Business

    MEXICO CITY — Yokohama Rubber Co. Ltd. (YRC) expects to announce later this year where it will build a new consumer tire plant in North America — in the U.S. or Mexico.

    “I expect a decision sometime this year,” Humberto Gómez, managing director of Yokohama Tire Mexico S. de R.L. de C.V. (YTMX), told Tire Business recently in a phone interview.

    Mr. Gómez said YRC already has decided to increase its production capacity in the North American Free Trade Agreement region. The new factory will be built either in the U.S. or Mexico, he confirmed in a telephone interview.

     

    Humberto Gómez

    “The (vehicle manufacturing) OEMs are the trigger,” he added, referring to a 2006 YRC plan — or “road map” — to double Yokohama's original equipment sales globally by 2020.

    Mexico — where a dozen major light vehicle companies either have assembly plants or are in the process of building one — is under consideration for the new plant because it's on target to be assembling 5 million cars a year by the end of the decade. The country is the world's seventh largest auto producer.

    Yokohama Tire Corp. photo Yokohama Tire Corp.'s existing car and light truck tire plant in Salem, Va.

     

    Yokohama Tire Corp. photo
    Gary Nash, newly named president of Yokohama TIre Mexico S. de R.L. de C.V.

    In an interview with Tire Business in early 2015, YTMX President Gary Nash said YRC was studying the feasibility of building a tire plant in Mexico, adding that the study was “at the beginning stages.”

    YTMX began importing consumer, commercial and off-the-road tires into Mexico officially in May 2013. Since then its sales have grown by “close to 500 percent,” Mr. Gómez said.

    “We are very happy. The market is very challenging, but fortunately the high end of the market is looking for Yokohama tires. We are a late entry but as somebody said, it's better late than later.” The company ended 2014 with 15 full-service retail outlets in Mexico and 2015 with 56. That has grown since to 73 and “will end this year with 100,” said Mr. Gómez, who added: “We also have our first Yokohama truck center in the state of Querétaro.”

    According to Mr. Gomez — who worked for Bridgestone Corp. for three decades before retiring, only to be persuaded by Mr. Nash to return to the industry with Yokohama — the Japanese company is recognized as a premium brand in Mexico “and our business model is very well accepted.

    “My first objective was to open 25 Yokohama stores per year. (But) we're going to achieve 100 stores in half the time we had forecast.”

    Group Michelin recently disclosed it's planning to build a $510 million tire plant in the state of Guanajuato, north-central Mexico. Production at the 1.58 million-sq.-ft. plant is expected to start in late 2018, with a capacity initially of 4 million to 5 million tires a year. The expected employment was not disclosed. The company is planning a ceremony for Aug. 22 to put in place the new factory's cornerstone.

    Elsewhere, Goodyear's plans are under way with its $550 million tire factory in San Luis Potosí, 120 miles to the north of the city of Guanajuato. Production there is scheduled to start by mid-2017.

    Meanwhile, Pirelli Tyre S.p.A. broke ground in June on a $200 million expansion of tire capacity at its 4-year-old car and light truck tire plant in Silao, also in Mexico's Guanajuato state.

    Production at the plant is scheduled to begin in the second quarter of 2017, Pirelli said, with an initial annual capacity of 2.5 million tires.

    Pirelli said the new plant strengthens Pirelli's position in Mexico and its growth at a worldwide level, and will increase its market share by meeting the requirements of export and domestic customers.

    The expansion will bolster the Silao plant's focus on the premium segment, Pirelli said, with production of high- and ultra-high-performance tires for cars and SUVs, for the NAFTA region markets.

    The tire maker's first plant at Silao covers more than 1.4 million square feet with an annual output of around 3 million tires last year and plans to grow to 5 million tires.

    With this new investment, the workforce will be increased by 400 employees to more than 1,800, not including 400 ancillary workers.

    Bridgestone is adding capacity at its plant in the State of Morelos, which borders on Mexico City to the south.

    YTMX's Mr. Gómez, who was the Brazil-based president of Bridgestone Latin America when he retired, said that one of the reasons for Yokohama's success in Mexico is that “we are not very interested in big wholesalers. We concentrate more on retail.”

    “In passenger tires, we are doing very well in high-performance and ultra-high performance tires.”

    He said low-priced Chinese-made tires represent as much as half of the Mexican aftermarket.

    Stephen Downer is a Mexico-based freelance writer who covers that country and Latin America for Tire Business and its Latin America e-newsletter. Material in this story about Michelin's and Pirelli's plant expansions in Mexico was contributed from Tire Business staff reports.

    Related Articles
    Yokohama viene considerando a los EE. UU. y a México para su nueva planta
    Letter
    to the
    Editor

    Do you have an opinion about this story? Do you have some thoughts you'd like to share with our readers? Tire Business would love to hear from you. Email your letter to Editor Don Detore at [email protected].

    Most Popular
    1
    Michelin to end tire production in Russia, transfer operations
    2
    Brison leaves Hankook for TireHub
    3
    Toyo North America names pair to executive positions
    4
    Updated: Tire makers react to war in Ukraine
    5
    Nokian: U.S. factory drives continued growth
    SIGN UP FOR NEWSLETTERS
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    Newsletter Center

    Staying current is easy with Tire Business delivered straight to your inbox.

    SUBSCRIBE TODAY

    Subscribe to Tire Business

    SUBSCRIBE
    Connect with Us
    • Facebook
    • LinkedIn
    • Twitter
    • RSS

    Our Mission

    Tire Business is an award-winning publication dedicated to providing the latest news, data and insights into the tire and automotive service industries.

    Reader Services
    • Staff
    • About Us
    • Site Map
    • Industry Sites
    • Order Reprints
    • Customer Service: 877-320-1716
    Partner Sites
    • Rubber News
    • European Rubber Journal
    • Automotive News
    • Plastics News
    • Urethanes Technology
    RESOURCES
    • Advertise
    • Privacy Policy
    • Privacy Request
    • Terms of Service
    • Media Guide
    • Editorial Calendar
    • Classified Rates
    • Digital Edition
    • Careers
    • Ad Choices Ad Choices
    Copyright © 1996-2022. Crain Communications, Inc. All Rights Reserved.
    • News
      • OPINION
      • BUSINESS/FINANCIAL
      • COMMERCIAL TIRE
      • GOVERNMENT & LAW
      • Humanitarian Award
      • RETAIL TIRES
      • SERVICE ZONE
      • TIRE MAKERS
      • Best Places to Work
      • Mid-Year Report 2022
      • RUSSIA WAR IN UKRAINE
    • Aligning with ADAS
    • Data
      • DATA STORE
    • Custom
      • SPONSORED CONTENT
    • Events
      • ASK THE EXPERT
      • LIVESTREAMS
      • WEBINARS
      • SEMA LIVESTREAMS
      • RUBBER NEWS EVENTS
    • Resources
      • DIRECTORY
      • CLASSIFIEDS
      • SHOP FLOOR
        • BALANCING
        • DEMOUNTING
        • SAFETY
        • TIRE REPAIR
        • TPMS
        • TRAINING
        • VEHICLE LIFTING
        • WHEEL TORQUE
      • AWARDS
        • Best Places to Work
    • ADVERTISE
    • DIGITAL EDITION