PHILIPPINES: Yokohama allots $650 million for Clark tire plant expansion

Clark Development Corp. (CDC) said the expansion will make Yokohama the largest tire manufacturer in the world.

CDC Vice President for Business Development Ernesto S. Gorospe said top officials of Yokohama Rubber Co. Ltd. have discussed expansion plans with President Aquino and CDC president Felipe Antonio Remollo during the President’s state visit to Japan last month.

President Aquino witnessed the MOU signing between Remollo and Yokohama Tire Philippines Inc. President and CEO Tetsuya Kuze and Yokohama Rubber Co. Ltd. Representative Director and President of Tire Group Hikomitsu Noji.

Under the plan, Yokohama is committing to invest $650 million in order to complete its expansion by year 2017, establishing in Clark the biggest tire plant in the world.

The expansion plan that will also generate 5,000 more jobs will increase the capacity of Yokohama from 22,000 to 40,000 tires per day, Remollo said.

This is part of the P27-billion investment of Yokohama announced last May. Upon completion, the extension of YTPI’s manufacturing plant will result in a significant increase in production capacity. By 2017, tires manufactured by YTPI will amount to approximately 17 million tires a year (50,000 tires/day) compared to the current production of seven million tires a year (21,000 tires/day).

The expansion also lead to an addition of job opportunities in the community, making the total working population projected to five thousand employees by 2017.

A portion of the first plant expansion will be first operated in 2013. The expanded area will be fully utilized by 2014.

With YRC’s approval of YTPI’s plant expansion, an area of 28.2 hectares will be added to the original 16.5 hectare-worth of YTPI perimeters. The total location area will add up to 44.7 hectares. YRC has already allocated an investment of 50 billion yen or P27 billion pesos for the plant expansion.

Established in April 30, 1996, YTPI is the first international company established in CFZ. Tires manufacture in the company are mostly exported to Europe, North America and other ASEAN countries.

Source: Daily "The Philippine Star", Manila; 6 Oct 2011

(Syed Rashid Ali, Karachi, Pakistan)