Yokohama Rubber to close Prague off-highway tire plant

Hiratsuka, Japan—The Yokohama Rubber Co., Ltd. (YRC), announced its decision to close its Prague plant, operated by its subsidiary Yokohama TWS Czech Republic a.s., which specializes in the production and sales of cross-ply off-highway tires (OHT), including tires for agricultural machinery. The production of tires currently being manufactured at this plant will be transferred to other plants within the YRC group.

Yokohama TWS, which is a major subsidiary of the YRC group, is implementing targeted measures to address the current challenges in the off-highway tire industry. Amid market cyclicality and changing consumer demands, the company is launching a comprehensive strategic program focused on boosting efficiency, enhancing service levels, and ensuring long-term competitiveness. This program is built on three core pillars: increasing investment in product innovation to deliver cutting-edge solutions in performance and sustainability; strengthening digitalization across all functions to enhance customer service levels; and optimizing its manufacturing footprint to drive operational excellence and sustain market leadership while remaining committed to a ‘local for local’ strategy.

As part of this plan, Yokohama TWS will cease production at its Prague plant by June 2025. The Prague plant is one of 30+ manufacturing sites in the YRC group’s global network and has been operating for 90+ years. The plant’s production of cross-ply tires faces persistent inefficiencies and relies on an outdated platform.

Yokohama TWS will engage in discussions with its partner companies, vendors, and other relevant parties in preparation for the plant’s closure. The company will also provide necessary support to the 270 employees affected by the closure.

YRC group is a leading provider of tires globally in the passenger car radial tires (PCR), truck and bus radial tires (TBR), and OHT segments that is headquartered in Japan. The group plans to increase its share in the OHT market segment and has actively invested in growth programs. It’s already the world’s largest manufacturer of agricultural tires and a close second in the industrial tire segment. Additionally, the group is working to build an optimal manufacturing footprint that ensures a sustainable level of profitability and secures its future. Further updates on the progress of the strategic program will be provided as needed.