In its desire to increase production, Yokohama Tire Philippines Inc.’s (YTPI) bares ₱3.5 billion expansion project on July 29 citing robust business environment for foreign investors in the Philippines.
In the groundbreaking ceremony, Department of Trade and Industry (DTI) Secretary Fred Pascual said that the Philippines is committed to supporting foreign investors like YTPI.
Set to be operational by the second quarter of 2026, the facility expansion will elevate YTPI’s production capacity by 5%, generate 500 new jobs, and solidify the company’s position as a leading player in the tire manufacturing sector.
In 2020, the company’s strategic partnership with the DTI to source natural rubber from Mindanao not only ensured a stable income for local farmers and rubber processors, but also contributed to the development of the domestic rubber industry. Currently, YTPI sources 54% of its rubber needs locally, playing a crucial role in the industry’s sustainability and growth.
These local sourcing efforts support the government’s initiatives to promote rural and agricultural development. By 2026, the company aims to source 100% of its natural rubber domestically, a significant increase projected to reach 30,000 metric tons annually, with potential value of PHP 1 billion.
Commercial Counselor Dita Angara-Mathay, DTI Lead Officer in Japan, highlighted that the YTPI’s investment expansion project attests to the progress of the country’s rubber industry development plan led by the Department.
A key component of this program is the active promotion of investments in rubber based product production. This initiative aims to create a comprehensive value chain, enhancing integration across the upstream, midstream, and downstream sectors.
To further attract investments in this sector, the DTI has initiated policy reforms that have opened key sectors to foreign investments, while the establishment of green lanes for strategic investments has fostered transformative infrastructure partnerships.
These strategic moves are expected to be further bolstered by the recent Trilateral Summit among the Philippines, Japan, and the United States, which is poised to catalyze foreign investment, particularly in the rubber industry within the Luzon Economic Corridor.
This increase in foreign investment will be supported by significant infrastructure development within the Luzon Economic Corridor. Three major projects planned in the region—the Subic-Clark-Manila-Batangas Railway System, the Clark International Airport expansion, and the Clark National Food Hub—will directly benefit foreign companies like YTPI, further enhancing the region’s attractiveness to international investors.
“These developments are particularly significant for YTPI as you will benefit from improved infrastructure, enhanced connectivity, and expanded logistical support. The strategic investments in transportation and logistics will streamline operations, reduce costs, and improve the competitiveness of YTPI’s products within the country and in the global market,” said the trade chief.
Commercial Counselor Dita Angara-Mathay reiterated the DTI’s commitment to support the YTPI’s research endeavors. These are focused on enhancing technology in the production, processing, and manufacturing of rubber-based products. Such advancements are crucial for companies like YTPI, which has emerged as a major player in the Clark Freeport Zone.
Building on discussions with YTPI officials during the Philippine Economic Briefing in Tokyo last June, the company’s planned expansion is a testament to its significant growth over 28 years in the Philippines. The company, a subsidiary of The Yokohama Rubber Co., Ltd., has seen tire production increase from one million in 1998 to nearly 10 million today.
This impressive trajectory positions YTPI as the largest tire producer in the Luzon Economic Corridor, poised to play a pivotal role in downstream operations with its competitive, quality-driven, and innovative products.