Skip to main content
EVENT TRACKER
Keep track of rescheduled, canceled industry events with our COVID-affected event tracker - Powered by Snap Finance
Close
Sister Publication Links
  • Rubber & Plastics News
  • European Rubber Journal
tb-logo
Subscribe
  • Login
  • Register
  • Subscribe
  • News
    • OPINION
    • CORONAVIRUS
    • AUTO INDUSTRY
    • BUSINESS/FINANCIAL
    • COMMERCIAL TIRE
    • FACTORY FIXES
    • GOVERNMENT & LAW
    • INTERNATIONAL
    • MOTOR SPORTS
    • NEW PRODUCTS
    • RETAIL TIRES
    • SERVICE ZONE
    • SEMA/AAPEX
    • SMALL BUSINESS
    • TIRE MAKERS
    • SPONSORED CONTENT
    • New round of Paycheck Protection Program funding opens
      Vaccine may usher sense of normalcy
      Cover-up: More retailers requiring face masks to curb COVID
      USW alleges COVID-19 violations at Kumho plant
    • Johnson named president, managing partner of Arnold Motor Supply
      Conti starts production of ‘HL' load index tires for select OE customers
      GM banking on 'BrightDrop' EV to build commercial van business
      Stengel promoted to president of NAPA parent Genuine Parts Co.
    • ITC votes to keep duties in place on China P/LT tire imports
      NLRB certifies USW as bargaining unit for Kumho plant in Georgia
      Air France renews tire supply deal with Michelin
      Hwa Fong joins Taiwan tire makers' bid for alternative to import duties
    • Love's plans to add over 30 stores in 2021 with Truck Care/Speedco services
      Linglong planning U.S. launch of 'Hubtrac' truck tire brand in 2021
      Evolving delivery trends good for CV tire sector — Cooper exec
      Conti adding light-duty products to General Tire OTR tire lineup
    • ITC votes to keep duties in place on China P/LT tire imports
      Hwa Fong joins Taiwan tire makers' bid for alternative to import duties
      New stimulus package fixes PPP loan confusion
      USW opposes Taiwan tire makers' dumping counterproposal
    • ITC votes to keep duties in place on China P/LT tire imports
      Air France renews tire supply deal with Michelin
      Russia's Kama Tyres expanding truck, ag tire capacities
      OK Tire adds Cooper, GT Radial passenger tires, Michelin, BFGoodrich commercial tires
    • New NASCAR, F1 tire designs delayed due to COVID
      U.K. race series extends contract with Goodyear through 2026
      Goodyear Racing staying on track
      General Tire Canada renews sponsorship deal with Raceline Network
    • Hunter adds ‘FastBlast' bead-seating for LT/SUV tire changing
      Linglong planning U.S. launch of 'Hubtrac' truck tire brand in 2021
      Hankook doubles size range of Ventus V2 all-season UHP line
      Conti adding light-duty products to General Tire OTR tire lineup
    • Updated ALI lifting points guide covers vehicle model years 2000-2021
      VIP Tires opens 20th store in New Hampshire, in Keene
      Hunter adds ‘FastBlast' bead-seating for LT/SUV tire changing
      Manley: Tire dealers look to future
    • Updated ALI lifting points guide covers vehicle model years 2000-2021
      Hunter adds ‘FastBlast' bead-seating for LT/SUV tire changing
      Johnson named president, managing partner of Arnold Motor Supply
      AMRA to host 5 educational webinars in Feb., March
    • WTC hosting webinar Jan. 20 on load-capacity standards
      Denver's Brian Sump named AAPEX Shop Owner of the Year
      DUB, TIS Wheels founder Myles Kovacs is SEMA Person of the Year
      AAPEX: Using social media to promote your business
    • New stimulus package fixes PPP loan confusion
      Vaccine may usher sense of normalcy
      2020 Review: PPP loans give boost to small businesses
      Latest COVID relief bill includes $325B in small-business support
    • ITC votes to keep duties in place on China P/LT tire imports
      Nokian Tyres to add up to 150 jobs at U.S. factory
      Hwa Fong joins Taiwan tire makers' bid for alternative to import duties
      New NASCAR, F1 tire designs delayed due to COVID
    • Sponsored By Yokohama Tire Company
      7 questions to ask consumers when they need tires for a crossover SUV
      Sponsored By Yokohama Tire Company
      Stocking Tires for Crossover SUVs
  • SHOP FLOOR
    • BALANCING
    • DEMOUNTING
    • SAFETY
    • TIRE REPAIR
    • TPMS
    • TRAINING
    • VEHICLE LIFTING
    • WHEEL TORQUE
    • Video: Balancing Tire
      Choosing the right balancing equipment
      Safety tips for wheel balancing
      An introduction to wheel balancing
    • Video: Demounting
      Demounting Equipment
      Making rims ready for a tight seal
      Tire changer types, tips and trends
    • Video: Safety
      Making friends with OSHA
      Ergonomics on the shop floor
      Customers
    • Video: Tire Repair
      Tire repair: Shining a light on visual inspections
      Staying safe when repairing a tire
      Essential tools, materials and equipment for tire repair
    • Video: TMPS Service
      Decoding sensor data for TPMS diagnosis
      Replacement TPMS sensor overview
      The life-saving work of TPMS
    • Video: Training
      Advantages of apprentice program partnerships
      Options and resources for CE tech training
      Internship ideas to attract tech talent
    • Video:Vehicle Lifting
      All types of lifts for all types of work
      Tips and recommendations for lifting safety
      The gravity of proper lift points
    • Video: Wheel Torque
      Using torque sticks to speed service times
      The danger of too much, too little torque
      The importance of torque specifications
  • Multimedia
    • VIDEOS
    • PHOTOS
    • PODCASTS
  • Events
    • ASK THE EXPERT
    • LIVESTREAMS
    • WEBINARS
    • SEMA LIVESTREAMS
  • Data
    • DATA STORE
  • Resources
    • DIRECTORY
    • CLASSIFIEDS
  • ADVERTISE
  • DIGITAL EDITION
MENU
Breadcrumb
  1. Home
  2. News
April 18, 2019 02:00 AM

Yokohama revises expectations at Mississippi truck tire plant

Bruce Davis
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print

    TOKYO — Yokohama Rubber Co. Ltd. has scaled back production expectations for its U.S. truck tire factory in West Point, Miss., due to a combination of facility- and personnel-related issues.

    The $300 million plant, which opened in 2015 with a nameplate capacity of 1 million medium truck tires a year, was on track to produce only about half of that in 2018, Yokohama said in a stock exchange filing in late 2018.

    In the same document, Yokohama rescaled the plant's production target by 2021 to 843,000 tires.

    Yokohama took a $102 million "asset impairment charge" against its third quarter earnings to account for a "reassessment" of the profitability of and business outlook for its Yokohama Tire Manufacturing Mississippi L.L.C. unit in West Point.

    • This story appears in the April 15 print edition of Tire Business.

    In the document, Yokohama cited a number of reasons for the plant's performance, including:

    Teething problems of "modern and efficient" production machines;

    Delayed ramp-up in process capability;

    Personnel hiring behind plan, in part due to high turnover rate; and

    Insufficient education and training due to the turnover rate.

    In a statement, Yokohama said: "Achieving profitability at the subsidiary has taken longer than management anticipated when production began there, and management has recorded asset impairment in accordance with a prudent reassessment of the business outlook for the subsidiary and of the outlook for recovering investment there."

    In the filing, Yokohama noted that the plant has operated at less than half of its projected output levels since it opened. The issues have contributed to operating losses totaling $164 million compiled by the firm's North American operations over the past four years.

    "We continue to aggressively address the challenges of running a brand new facility and increasing production output," YRC said in November. "The facility has all the necessary elements for success — state-of-the-art equipment, a dedicated and highly trained workforce, experienced and skilled management — and we will continue to invest in our technology, our people and our production capabilities to meet our goals"

    The company also noted that engineers from its plant in Mie, Japan — which has the same type of tire-building machines — are engaged in training personnel at West Point.

    Prior to taking the asset impairment charge last year, Yokohama dismissed 29 employees at the plant because they did not meet "pre-employment requirements."

    In 2013, Yokohama Tire Corp. donated $500,000 to East Mississippi Community College and Mississippi State University to help establish worker training-related courses ahead of the plant's opening.

    At the ground-breaking for the plant in 2013, Yokohama executives stated that the 570-acre West Point site could accommodate a plant four times the size of the one being built. An operation that size would require a workforce of up to 2,000 employees.

    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].

    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.

    tb-logo
    Reader Services
    • Contact Us
    • About Us
    • Site Map
    • Industry Sites
    • Order Reprints
    • Customer Service: 877-320-1716
    Partner Sites
    • Rubber & Plastics News
    • European Rubber Journal
    • Automotive News
    • Plastics News
    • Plastics News China
    • Urethanes Technology
    RESOURCES
    • Advertise
    • Privacy Policy
    • Privacy Request
    • Terms of Service
    • Media Guide
    • Editorial Calendar
    • Classified Rates
    • List Rental
    • Digital Edition
    • Careers
    • Ad Choices Ad Choices
    Copyright © 1996-2021. Crain Communications, Inc. All Rights Reserved.
    • News
      • OPINION
      • CORONAVIRUS
      • AUTO INDUSTRY
      • BUSINESS/FINANCIAL
      • COMMERCIAL TIRE
      • FACTORY FIXES
      • GOVERNMENT & LAW
      • INTERNATIONAL
      • MOTOR SPORTS
      • NEW PRODUCTS
      • RETAIL TIRES
      • SERVICE ZONE
      • SEMA/AAPEX
      • SMALL BUSINESS
      • TIRE MAKERS
      • SPONSORED CONTENT
    • SHOP FLOOR
      • BALANCING
      • DEMOUNTING
      • SAFETY
      • TIRE REPAIR
      • TPMS
      • TRAINING
      • VEHICLE LIFTING
      • WHEEL TORQUE
    • Multimedia
      • VIDEOS
      • PHOTOS
      • PODCASTS
    • Events
      • ASK THE EXPERT
      • LIVESTREAMS
      • WEBINARS
      • SEMA LIVESTREAMS
    • Data
      • DATA STORE
    • Resources
      • DIRECTORY
      • CLASSIFIEDS
    • ADVERTISE
    • DIGITAL EDITION