HIRATSUKA, Japan — Yokohama Rubber Co. Ltd. (YRC) is planning to build a passenger tire plant in Mexico, rated at 5 million tires a year and valued at $380 million, in a bid to strengthen its capacity to supply the North America market.
The plant will be built in Saltillo, in the northeastern Mexican state of Coahuila, with manufacturing scheduled to start in the first quarter of 2027, Yokohama said. The 150-acre site in the Alianza Industrial Park in Saltillo will be able to accommodate expansion thereafter, the company added.
The new plant will complement YRC's existing factories in Salem, Va., and West Point, Miss., in supplying the North American market. The company has considered Mexico as potential site for manufacturing since 2016.
"This is a clear signal that Yokohama is committed to the North American market," Jeff Barna, Yokohama Tire Corp. president and CEO, said.
"The increased production capabilities will supplement existing global capacity for tires destined for our region," Barna said.
YRC also sources tires for North America from plants in Japan, the Philippines and Thailand.
YRC said it recognizes that "local production for local demand will be indispensable to rapidly meeting the expected increase in demand for tires in the North American market." Work on the plant is expected to start in the second quarter.
North America accounts for 26% of Yokohama Rubber's global tire-related sales revenue, or $1.62 billion last year.
The new plant will have access to a major railway line and expressway that will facilitate timely supply of tires to customers throughout North America. Among other companies located in the Alianza park is vehicle maker Stellantis N.V. (Fiat, Chrysler, Ram brands).
Yokohama said its decision to build this plant aligns with goals it spells out in its 2024–26 medium-term management plan, Yokohama Transformation 2026 (YX2026), which aims to maximize the sales ratios of high-value-added tires by expanding sales its Advan performance and Geolandar SUV/pickup lines as well as winter tires and larger rim-diameter (18 inches and above) tires.
YRC joins Sailun Group Co. Ltd. and Zhongce Rubber Group Co. Ltd. — the world's No. 12 and 9 tire makers — as companies with plans to build tire manufacturing capacity in Mexico.
Sailun has signed a joint-venture agreement with Mexico's TD International Holding S.A.P.I. de C.V. for the construction of a $240 million, 6 million unit/year car tire plant in León, in the central Mexican state of Guanajuato.
ZC Rubber also has selected a site near Saltillo for its factory, although the Chinese tire maker has yet to disclose investment or capacity details about the project.
These companies will join Bridgestone Corp., Continental A.G., Goodyear, JK Tyre Co. Ltd. and Pirelli & C. S.p.A. as tire makers with manufacturing in Mexico, which already is the No. 2 source of passenger tires and No. 6 source for light truck tires into the U.S., with shipments of 22.8 million and 1.79 million units, respectively, last year.
The value of tires imported from Mexico was $2.18 billion, up 15.6% over 2022, according to available Department of Commerce data.
