MANILA, Philippines — The local unit of Japanese firm Yokohama Rubber Co. Ltd. yesterday broke ground on its P3.5-billion manufacturing facility expansion project in Pampanga, which is expected to create 500 new jobs.
In a statement yesterday, the Department of Trade and Industry (DTI) said Yokohama Tire Philippines Inc.‘s (YTPI) facility at the Clark Freeport Zone would be operational by the second quarter of 2026, which will generate 500 new jobs.
The expansion will increase the company’s production capacity by five percent and position it as the leading player in tire manufacturing in the country.
YTPI has seen its production increase from one million tires when it started in 1998 to nearly 10 million tires at present.
Bulk or 94 percent of YTPI’s output will be for the export market, while the balance will be sold to the domestic market.
By 2026, YTPI is aiming to source 100 percent of its natural rubber requirements locally. This is projected to reach 30,000 metric tons annually, with a potential value of P1 billion.
At present, 54 percent of YTPI’s rubber needs is being sourced from the domestic market.
“The Philippine government, under the leadership of President Marcos Jr. and its vision of Bagong Pilipinas, is committed to supporting foreign investors like YTPI,” Trade Secretary Alfredo Pascual said.
Encouraging investments in rubber-based production is among the initiatives identified under the country’s rubber industry development plan.
To attract more investments in this space, the DTI has initiated policy reforms to open key sectors to foreign investments.
The DTI expects the development of the Luzon Economic Corridor to encourage more investments in the rubber industry in that area.
Three major projects are being planned to support the development of the Luzon Economic Corridor such as the Subic-Clark-Manila-Batangas Railway System, the Clark International Airport expansion and the Clark National Food Hub.
“These developments are particularly significant for YTPI as you will benefit from improved infrastructure, enhanced connectivity and expanded logistical support,” Pascual said.
He said investments in transportation and logistics would streamline operations, bring down costs and improve the competitiveness of YTPI’s products within the country and in the global market.