9 million tire project breaks ground

In December, Yokohama celebrated the groundbreaking ceremony for its new factory in the Qiantang District of Hangzhou, China. The plant is expected to begin operations in 2026, with an initial annual production capacity of 9 million passenger car tires and projected annual revenue of RMB 3.5 billion (approximately £379.6 million). The facility’s ultimate annual production capacity is planned to reach 14 million tires.

Focus on EV Tires and High-Value Products

The new factory will prioritize the production of tires for electric vehicles (EVs) and high-value-added products, while also enhancing Yokohama's capabilities in manufacturing large-size tires. According to the Qiantang District government, the Yokohama smart factory project is a collaborative effort between the district and Yokohama, with an investment of $500 million—significantly higher than the RMB 1.96 billion (approximately $269.7 million; £212.8 million) announced by Yokohama on July 1, 2024.

A Prime Business Environment

Yokohama Chairman and CEO Masataka Yamaishi stated:

“We decided to increase investment in this new factory because of Qiantang's excellent business environment and abundant talent pool, which are critical to our company’s growth. We expect the factory to be completed within one year, making it the fastest-built factory among all our global facilities.”

Strengthening Hangzhou’s Automotive Hub

Located in Qiantang District, a key hub for Hangzhou's automotive industry, the new plant is surrounded by nearly 200 enterprises in the automotive supply chain, including major players such as Geely, Ford, GAC Group, Leapmotor, Zhongce Rubber, and Magna International. In 2023, Qiantang District contributed over 95% of Hangzhou’s total automotive output, with its smart vehicle and equipment manufacturing sectors growing by 10.2% year-on-year.

The Hangzhou municipal government anticipates that the completion of Yokohama’s new tire factory will further boost the region’s automotive industry, injecting fresh momentum into Qiantang’s high-quality economic development.