Yokohama Rubber
Basic Information
- Stock Code
- 5101
- Industry
- Rubber Products
- Category Detail
- Auto Parts
- Prefecture
- Tokyo
- Establishment Year
- October 1917
- Listing Year
- April 1950
- Official Website
- https://y-yokohama.com/
- TSE Information
- TSE Information
- Yahoo! Finance
- Yahoo! Finance
- Other Companies
- TOYO, Bridgestone, Sumitomo Rubber, Topy Industries
Overview
Yokohama Rubber is a tire and rubber products manufacturer founded in 1917, holding the third largest tire market share in Japan and deploying a diverse range of products globally.
Current Situation
Yokohama Rubber recorded consolidated revenue of approximately 985.3 billion yen and operating profit of approximately 100.3 billion yen for the fiscal year ending December 2023, establishing a solid position both domestically and internationally. It boasts the third largest share in the domestic market after Bridgestone and Sumitomo Rubber, and ranks eighth in the world. Its flagship Yokohama Tires are offered for a wide range of vehicle types, with a track record of supplying motorsports such as Super Formula. In recent years, it has strengthened overseas production bases in Southeast Asia and Russia, and acquired tire businesses for agricultural and construction machinery. Since 2022, it has been reorganizing industrial products and transferring its head office functions to the Hiratsuka Plant. It is focusing on sustainability by promoting environmentally friendly Blue Earth series as key products, while pursuing market expansion and technological innovation based on long-term growth strategies. It maintains market competitiveness through solid brand value and diversified manufacturing bases, and plans to appoint a new representative director and president in 2024.
Trivia
Interesting Facts
- Yokohama Tires is the third largest tire brand in Japan.
- ADVAN brand tires are used as the one-make supplier for Super Formula.
- DNA series is known as a pioneering fuel-efficient tire brand.
- Has promoted domestic tire production and R&D since the 1950s.
- Actors Yuji Oda and Riho Yoshioka have appeared in tire commercials.
- Established Hokkaido Tire Test Center on the site of the former Asahikawa Racecourse.
- Served as one-make partner for the Macau Grand Prix for a long period.
- Company name originates from its founding in Yokohama City.
- Had a joint venture with Germany's Continental at one point.
- Part of the Furukawa Group with diverse industrial networks.
- Preparing to enter the plant-based protein market.
- Has supplied tires to the World Touring Car Championship.
- Withdrew from aircraft tire manufacturing in 2009.
- Established local production system in Russia in 2012.
- Used popular actresses in CMs to enhance brand image.
Hidden Connections
- As part of the Furukawa Group, builds sustainable industrial collaborations with other long-established companies.
- Accelerating overseas business expansion in collaboration with Mitsubishi Corporation and Itochu Corporation.
- Has transactions and partnerships with multi-industry companies such as Hitachi Construction Machinery and Mitsui Chemicals.
- Gained global brand exposure as sponsor of Chelsea FC soccer team.
- Conducted advertising collaborations with iconic Japanese cultural characters like Ultraseven.
- Strong ties to the region, with a former company president serving as mayor of Yubari City in Hokkaido.
- Close ties to motorsports and gaming industries, reflected in technology development.
- Utilizing former Asahikawa Racecourse site to develop test course for quality improvement.
Future Outlook
Growth Drivers
- Expansion of environmentally friendly tire market
- Strengthening of sales networks in global markets
- Development of high-value-added products through technological innovation
- Expansion of agricultural and construction machinery tire business
- Efficient reorganization of manufacturing bases and cost optimization
- Social trends emphasizing sustainability
- Brand strength enhancement utilizing motorsports
- Increasing demand in emerging markets
- Growing demand for high-performance studless tires
- Productivity improvements through digital technology adoption
- Enhanced product safety and quality management
- Rapid response to diverse customer needs
Strategic Goals
- Leap to top 5 global tire manufacturers
- Achieve revenue exceeding 1 trillion yen
- 50% reduction in CO2 emissions
- Over 70% usage rate of renewable materials
- Optimization of global manufacturing bases
- Business innovation through digitalization
- Full rollout of sustainable products
- No.1 customer satisfaction brand strategy
- Active entry into new business areas
- Realization of comprehensive DX strategy
Business Segments
Automotive Tire Manufacturing & Sales
- Overview
- Manufactures and sells high-quality automotive tires, also対応 to OEM.
- Competitiveness
- Robust in-house production system and technological capabilities
- Customers
-
- Automobile manufacturers
- Tire dealers
- Wholesalers
- Large vehicle owners
- Products
-
- Passenger car tires
- Truck tires
- SUV tires
- Special-purpose tires
Industrial Rubber Products
- Overview
- Supplies high-durability rubber parts for industrial use.
- Competitiveness
- High-precision manufacturing technology and long-term reliability
- Customers
-
- Machinery manufacturers
- Construction companies
- Equipment maintenance companies
- Products
-
- Rubber hoses
- Anti-vibration rubber
- Packings
- Industrial belts
Tires for Agricultural & Construction Machinery
- Overview
- Manufactures durable tires for agricultural and construction machinery.
- Competitiveness
- Leveraging overseas brands through acquisitions and technology integration
- Customers
-
- Agricultural machinery manufacturers
- Construction companies
- Leasing companies
- Products
-
- Agricultural machinery tires
- Construction machinery tires
Aircraft-Related Products & Parts
- Overview
- Provides high-precision tires and rubber products for aviation.
- Competitiveness
- Advanced quality control and development capabilities
- Customers
-
- Aircraft manufacturers
- Air cargo companies
- Products
-
- Aircraft tires
- Rubber in-flight equipment
- Drone parts
Competitive Advantage
Strengths
- Diverse tire product lineup backed by high technological capabilities
- Stable domestic market share and international presence
- Manufacturing bases and sales networks spanning multiple countries
- Brand strength cultivated through motorsports
- Broad customer base and OEM responsiveness
- Development and promotion of environmentally friendly products
- Reliability backed by long history
- Diverse rubber product lineup
- Strong capital base and financial foundation
- Robust research and development system
Competitive Advantages
- Third largest aftermarket tire share in Japan
- Eighth largest scale in the global market
- Diverse brand portfolio including BluEarth and ADVAN
- Strengthened overseas manufacturing and sales in Southeast Asia, Russia, etc.
- Expertise and track record in aviation and agricultural tires
- High-quality products through superior development technology and quality control
- Technology innovation promoted through motorsports collaborations
- Product lineup advancing sustainability
- Product customization to meet wide customer needs
- Business diversification through acquisition strategy
Threats
- Risk of cost increases due to raw material price fluctuations
- Intensifying price competition with rivals
- Profit pressure from exchange rate fluctuations
- Uncertainty in market demand and supply due to climate change
- Increased manufacturing costs from stricter environmental regulations
- Changes in competitive landscape from new entrants or alternative technologies
- Impact on overseas operations from geopolitical risks
- Global supply chain issues
- Burden of responding to rapid changes in consumer preferences
- Decline in demand due to economic uncertainty
Innovations
2024: Development of new high-performance environmentally friendly tire model
- Overview
- Launched new products in the BluEarth series with significantly improved environmental performance.
- Impact
- Achieved fuel efficiency improvements and enhanced customer evaluations
2023: Acquisition of mining tire factory in Europe
- Overview
- Acquired manufacturing base in Romania to strengthen mining tire production capacity.
- Impact
- Contributes to share expansion in the European market
2022: Reorganization of industrial and automotive hose business
- Overview
- Promoted business streamlining and consolidation for leaner management.
- Impact
- Succeeded in cost reduction and competitiveness improvement
2021: Completion of Hamaitite business divestiture
- Overview
- Sold building waterproofing materials business to Switzerland's Sika to focus management resources.
- Impact
- Achieved optimization of business portfolio
2020: Integration of overseas sales companies for sales efficiency
- Overview
- Integrated tire sales companies in each region to strengthen sales capabilities.
- Impact
- Optimized sales network and improved profitability
Sustainability
- Promotion of fuel-efficient tires under BluEarth brand
- Efforts to reduce CO2 emissions in manufacturing processes
- Strengthened development of recyclable products
- Thorough environmental management at overseas bases
- Participation in environmental conservation activities with local communities
- Enhanced environmental considerations across the supply chain
- Increased eco-mark certified products
- Employee environmental education programs
- Setting targets for greenhouse gas reduction
- Establishment of sustainable material procurement system
- Promotion of water resource conservation and reuse
- Thorough waste reduction and proper disposal