In a significant move set to amplify its global Off-the-Road (OTR) tire manufacturing capabilities, The Yokohama Rubber Co., Ltd., announced the successful acquisition of fixed assets belonging to a previously closed plant in Romania. The acquisition, spearheaded by its off-highway tire (OHT) subsidiary, Yokohama TWS Romania S.R.L., marks a crucial step in the company's "Hockey Stick Growth" strategy outlined in its Yokohama Transformation 2026 (YX2026) medium-term management plan.

The newly acquired assets, encompassing land, buildings, and specialized OTR tire production machinery, are located at No. 1 Portile de Fier Blvd, Drobeta-Turnu Severin, Mehedin?i County, Romania. This prime location, coupled with a substantial land area of approximately 200,000 square meters, provides Yokohama Rubber with a robust foundation to significantly expand its production of tires for mining and construction machinery within the European market. The acquisition was finalized at a value of US$35 million on May 2.

This latest development is a direct follow-up to Yokohama Rubber's earlier acquisition of The Goodyear Tire & Rubber Company’s OTR business, signaling a clear and ambitious trajectory for the company in the off-highway tire sector. The integration of these new Romanian facilities is expected to streamline and enhance the company's overall production capacity, particularly for the high-demand mining and construction machinery tire segment.

Yokohama Rubber's overarching objective with this acquisition is multifaceted. Firstly, it aims to substantially increase the Group's production capacity for crucial mining and construction machinery tires in Europe, addressing growing market demand and strengthening its supply chain in the region. Secondly, it is a key component of Yokohama Rubber’s broader effort to diversify and expand its OHT product lineup across all categories. By bolstering its production and supply capabilities, the company seeks to reinforce its market position and competitive edge within the fiercely contested OHT business.

The European market presents a significant opportunity for Yokohama Rubber, with continued infrastructure development and mining activities driving demand for robust and reliable OTR tires. The establishment of this new production hub in Romania will allow Yokohama Rubber to respond more agilely to regional market needs, reduce lead times, and potentially optimize logistics, thereby delivering enhanced value to its customers.

This strategic investment aligns perfectly with the "Hockey Stick Growth" ambition of YX2026, which envisions a sharp upward trajectory in key business segments. By focusing on critical growth areas like OHT and committing significant resources to expanding its production footprint, Yokohama Rubber is actively laying the groundwork for sustained long-term growth and increased profitability.