Yokohama’s Potential Acquisition of Bankrupt Romanian Tire Manufacturer Sparks New Factory Speculation

Recent reports from several Romanian media outlets indicate that Yokohama Rubber (Yokohama) is interested in purchasing the assets of local off-the-road (OTR) tire manufacturer Euro Tires Manufacturing SRL. The company has reportedly submitted a letter of intent to acquire the plant’s assets by the end of 2024. Euro Tires Manufacturing declared bankruptcy again in late January 2025, prompting widespread industry speculation about whether Yokohama might build or expand a European tire production base in Romania.

Background on the Acquisition

• Target Company: Euro Tires Manufacturing is based in Mehedințean, Romania, with a manufacturing site of around 19 hectares. Since 2018, the company has been embroiled in nearly seven years of bankruptcy and restructuring. Latest data show that by the end of 2023, the company suffered losses of nearly RON 30 million (approximately CNY 47.3 million), had revenues of only about RON 623,000 (approximately CNY 980,000), and a staff of just 31 employees—compared to a workforce of over 600 employees and tens of millions of RON in revenue prior to bankruptcy.

• Assets for Sale: As part of the bankruptcy proceedings, Euro Tires’ assets were listed at a starting price of USD 35 million (excluding VAT). These assets include 19 hectares of land, plus 38 industrial and administrative buildings such as production halls and tire manufacturing facilities. It remains unclear whether the 19 hectares cited include all 38 buildings.

Yokohama’s Potential Plans and Rationale

• Possibility of a New Plant: Industry insiders note that Yokohama has long contemplated establishing a new European passenger car or truck tire plant. Over the past one or two years, the company has also internally discussed building passenger car tire lines adjacent to its existing OTR factories.

• Infrastructure Advantages: Euro Tires’ existing site has foundational structures for tire production, as well as management and supply chain support. If Yokohama acquires the plant, it could reduce both time and financial costs when upgrading or refitting the facilities, potentially providing synergies for other types of tire production.

• Land Size Considerations:

  • Large factories producing millions of passenger car tires annually usually occupy at least 30 to 100 hectares or more.

  • Continental’s plant in Timișoara, Romania, spans around 60 hectares, while Pirelli’s facility in Slatina, Romania, which produces around 15 million tires per year, occupies roughly 50 hectares. Some of Michelin’s integrated sites exceed 100 hectares.

  • Even if the 19 hectares at Euro Tires Manufacturing include all 38 buildings, scaling up to produce millions of passenger car tires might require purchasing adjacent land or significantly expanding operations.

• European Footprint: Yokohama had previously considered building a new plant in “central Europe” (e.g., Poland, the Czech Republic) to serve the European market more effectively. It remains unclear whether Romania would replace those countries as a site for future passenger or truck tire production.

   

   

Yokohama’s Existing Global Presence

• In Japan: Yokohama’s factory in Mishima, Japan, is a major OTR tire manufacturing base, occupying a significantly larger site than Euro Tires’ Romanian facility.

• European TWS Factories: Yokohama already operates factories in various European locations (such as Italy), which typically occupy around 20 hectares each. By contrast, the former Cooper Tire plant in Melksham covers roughly 68 acres (27 hectares), considered medium-to-small in Europe.

• Strategic Positioning: Industry analysts believe that if this acquisition goes through, Yokohama’s primary goal is to strengthen or revive OTR tire production in Romania, leveraging existing workforce and equipment. Any large-scale expansion into passenger car or truck tires would likely require additional land purchases or significant capital expenditures.

Outlook

• Official Stance: Thus far, Yokohama and its subsidiary Yokohama TWS have not confirmed the details, price, or subsequent plans for the acquisition. However, European executives have expressed confidence in the outlook through 2025 and beyond, signaling that Europe remains a critical region in Yokohama’s global strategy.

• Industry Impact: Should the purchase go ahead, Romania would add another global tire manufacturer’s production base, boosting the local automotive supply chain. However, given Euro Tires’ repeated bankruptcies, Yokohama would face the critical task of integrating the plant’s infrastructure, machinery, and human resources into its broader global portfolio and ramping up production capacity as needed.

Overall, Yokohama’s move to acquire Euro Tires Manufacturing is widely seen as an effort to bolster its European OTR tire operations rather than a direct shortcut to establishing a large-scale passenger car or truck tire line. Whether Yokohama might further expand in Romania to build such a large new factory remains to be seen as the acquisition process and market dynamics unfold.