The Yokohama Rubber Co., Ltd. (YRC) announced its decision to close its Prague plant, operated by its subsidiary Yokohama TWS Czech Republic a.s. It specialises in producing and selling cross-ply off-highway tyres (OHT), including tyres for agricultural machinery. The tyres currently manufactured at this plant will be transferred to other plants within the YRC group.
Yokohama Rubber to Close Prague OHT Plant as Part of Strategic Measures to Optimise Production Operations
Yokohama TWS, a major subsidiary of the YRC group, is implementing targeted measures to address the current challenges in the off-highway tyre industry. Amid market cyclicality and changing consumer demands, the company is launching a comprehensive strategic program. This strategic program is 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 digitalisation across all functions to enhance customer service levels
- Optimising its manufacturing footprint to drive operational excellence and sustain market leadership while remaining committed to a ‘local for local’ strategy.
Support for Plant’s Employees
Yokohama TWS will cease production at its Prague plant by June 2025 as part of this plan. 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 The plant’s production of cross-ply tyres faces persistent inefficiencies and relies on an outdated platform.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 Focuses on Sustainable Manufacturing for Future Growth
YRC Group is a leading provider of tyres globally in the passenger car radial tyres (PCR), truck and bus radial tyres (TBR), and OHT segments. The group is headquartered in Japan and plans to increase its share in the OHT market segment. It has actively invested in growth programs. It’s already the world’s largest manufacturer of agricultural tyres and a close second in the industrial tyre segment.
Additionally, the group is working to build an optimal manufacturing footprint that ensures a sustainable level of profitability and secures its future. As needed, further updates on the progress of the strategic program will be provided.
