Yokohama Rubber Company’s decision to establish Mexico as the manufacturing hub for its Americas OTR operations signals more than a capacity expansion. It reflects a strategic overhaul of its global industrial footprint. As geopolitical uncertainties, tariff risks and supply-chain disruptions reshape manufacturing priorities, the company’s ‘local for local’ model seeks to position production closer to customers while strengthening resilience. The move also underlines its broader ambition to emerge as the world’s second-largest supplier of specialised mining and construction tyres.

Yokomaha Rubber Company is seeing Mexico as its gateway for Americas, especially its OTR tyre business. Mexico will serve as the production hub for Yokohama and Goodyear Off-the-Road branded products under its ‘local for local’ manufacturing strategy.

Yokohama Rubber will invest USD 115 million to build a mining and construction machinery tyre plant in Mexico as part of the second phase of expansion at its site, where a passenger car tyre plant is already under construction. The brownfield facility will have an annual production capacity of 10,650 tonnes (rubber weight), with construction due to begin in the third quarter of 2026 and production expected to start in the second quarter of 2028.

The company is also establishing a greenfield OTR tyre plant in Odisha, India, with an annual production capacity of 9,150 tonnes and a planned investment of USD 130 million. Production at the Indian facility is scheduled to begin in the third quarter of 2028.

The facility will supply OTR tyres across North and South America, complementing plants in Romania, India, Japan and the Czech Republic, while maintaining global quality standards supported by research and development centres in Japan and US.

Speaking to Tyre Trends¸ Yokohama OTR President Loic Ravasio said, “Mexico becomes the anchor of our Americas production, part of a broader move towards a ‘local for local’ model in which we manufacture OTR tyres in every major region, closer to the customers who use them. It joins a growing worldwide footprint that already includes Romania, India, Japan and the Czech Republic – every site held to the same quality benchmark backed by our research and development centres in Japan and US. For manufacturing specifically, Mexico’s role is to serve North and South America from one central site, putting product closer to mining, construction and infrastructure customers throughout the Americas.”

The plants in India and Mexico are sized and positioned for the regions they serve. These new facilities are part of the company’s transition from Goodyear-operated production to Yokohama-owned sites while also growing its total worldwide OTR capacity. Japan remains one of the company’s core production sites throughout, added Ravasio.

“Mexico’s plant and India’s greenfield plant will more than replace Goodyear plants capacity, allowing us to continue supplying our existing customers, supporting their growth, and also winning new customers with the additional capacity,” he added.

As for production responsibilities, the company’s goal is to produce tyres closest to the customers that need them. OTR plants are flexible and able to adapt to regional needs. “We’re not locking in specifics yet. We want to listen to customers and show them what the combined portfolio can do first and let that shape where things get built,” Ravasio said.

The Mexico manufacturing facility is being developed in Saltillo, Coahuila. Its centralised location for production and distribution across the entire Americas region will allow Yokohama to produce OTR tyres closer to its customers, shortening the lead time and improving responsiveness to customer requests.

“We’re building the Saltillo site to be state-of-the-art from day one including the technology and quality standards because we’re not planning only for today’s market, we’re planning for where our customers and this industry are heading,” said Ravasio.

MARKET ADVANTAGES

The acquisition of Goodyear’s OTR business has created optimum synergies for Yokohama Rubber Company as it is now leveraging the strengths of two complementary product portfolios, which lets it offer one of the most complete product ranges available and better meet the needs of its customers.

“Manufacturing, logistics, research and development synergies have all played their part, bringing procurement, production planning and engineering together from both organisations rather than running them in parallel. Together, that’s meant retaining the great majority of longstanding accounts from both sides and winning new customers we hadn’t worked with before,” said Ravasio.

He added, “What’s really exceeded our initial expectations is the pace. We said we wanted to move quickly on capacity and within about a year of closing we’d already committed to three new or expanded plants across three continents. The two research and development centres working together have increased our capabilities to launch quicker new products and new technologies into the market. That pace shows real commitment to the OTR industry.”

Commenting on the advantages that Mexico offers the business, he noted that Mexico has a skilled, experienced manufacturing workforce and an established industrial supplier base. Its real advantage is geography as a single site here can efficiently reach customers across North America, Central America and South America, which is central to the company’s local-for-local approach.

Yokohama Rubber Company is also able to build on existing local relationships in the country, giving it a head start on talent and operational know-how as it brings the OTR plant online.

GROWTH DRIVERS

According to Ravasio, global infrastructure development in roads, rail and housing along with continued mining and construction activity continues to drive demand for OTR tyres across the Americas.

Mexico’s centralised location allows for shorter supply lines and tyres built closer to the mines and job sites that use them rather than shipped across oceans, which means less equipment downtime waiting on tyres.

“In a market where total cost of ownership (TCO) and not just tyre price drives the buying decision, minimising that downtime is one of the ways we compete,” he noted.

The Mexico plant is designed first and foremost to serve regional demand across the Americas. Nonetheless, the company’s global network is built for flexibility and the plant’s output can support other markets as needed to balance capacity across our worldwide footprint, said Ravasio.

The primary beneficiaries will be mining and construction operators across the Americas along with the infrastructure projects that depend on them. Yokohama Rubber Company’s priority is to better serve its customers, global or local, and to ensure business continuity.

Moreover, as competition toughens in the global OTR market, Yokohama Rubber Company seeks to secure the second spot in the list of world’s largest suppliers. Alluding to this, Ravasio said, “Our ambition is clear. We want to become the world’s second-largest supplier of specialised mining and construction tyres and the right manufacturing footprint is one part of how we get there alongside the same high-quality standards we’re building into every new site including Mexico.”

“Product quality and performance matter just as much and our research and development centres in Japan and US design tyres built specifically for this segment backed by services like tyre pressure management systems TPMS and EMTrack that give customers real-time visibility into tyre health and performance,” he added.

The target behind all of it is straightforward, which is to lower Yokohama customers’ TCO and help them run more competitive operations. Total cost of ownership matters more to OTR customers than any other measure and Yokohama Rubber Company is building everything including research and development, service tools and manufacturing around living up to its TCO leadership position in the market.

FIGHTING CHALLENGES

The plant is being built around modern, energy- and water-efficient lines with the digital process controls needed to hold consistent quality at scale. Producing closer to its customers also means less long-distance transportation of finished tyres and fewer transport-related emissions as a result.

Workforce training will be built around Yokohama Rubber Company’s current manufacturing standards and the plant’s operations will be measured against the environmental targets in its medium-term management plan.

Furthermore, this project is as much about people as it is about capacity. The company is leaning on local expertise and know-how in the region to build the Mexico manufacturing team paired with quality training grounded in its manufacturing experience from other parts of the world.

Hence, the site benefits from both perspectives from day one and creates meaningful skilled employment, directly at the plant and through the broader supplier network around it.

“It’s the same approach we’ve used successfully as we’ve expanded elsewhere. We invest in local talent, train heavily and hold everyone to the same standards we apply globally. Wherever we build, the people on the floor get the same training and hold the same standards as any other Yokohama site. That’s non-negotiable,” Ravasio said.

Alluding to tackling supply chain setbacks, the executive noted that producing closer to the customer is the clearest way to build resilience too as it reduces the company’s exposure to long cross-continental shipping routes and the risks that come with them, plus it helps mitigate the impacts of tariffs.

“Our plant in Mexico makes our overall industrial footprint stronger, which is what helps us weather supply-side setbacks rather than depending on any single site or transit lane. It also lets us react faster to swings in product trends and other unforeseen events because the people and the production capacity making that call are closer to where the need actually is. That kind of diversified, local-for-local footprint is deliberately designed to avoid the kind of supply shocks the industry has seen in recent years,” he added. And over the next five years, Mexico becomes one of the clearest proof points for the company’s local-for-local approach. “We expect continued growth from infrastructure and mining activity and customers pushing equipment harder, which raises the bar for durability and service as much as tyre technology. Regional manufacturing, closer partnerships with customers and the network we’ve built over the past year are how we intend to become the world’s second-largest supplier in the OTR industry,” Ravasio said.

Mexico’s emergence as the company’s Americas manufacturing hub represents a calculated investment in regionalisation rather than simple capacity addition. Whether this strategy translates into sustained market share gains will depend on execution, customer adoption and competitive pressures, but it firmly positions the company to respond faster to an increasingly demanding global OTR market.

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The Automotive Tyre Manufacturers’ Association (ATMA), the apex body representing tyre companies in India, has requested the Government of India to allow temporary duty-free imports of natural rubber under a Tariff Rate Quota (TRQ) mechanism.

The request follows an increase in domestic natural rubber prices to INR 300 per kg, representing a rise of nearly 62 percent from the November 2025 average of INR 186 per kg, alongside supply shortages during the peak production season.

In a letter submitted to Union Commerce and Industry Minister Piyush Goyal, the association proposed limiting the duty-free import quota to the assessed deficit between domestic demand and supply until market conditions stabilise.

During FY2025-26, India produced 905,000 tonnes of natural rubber against a consumption volume of 1.42 million tonnes, creating a supply gap of nearly 37 percent. Tyre manufacturers are simultaneously managing cost increases in synthetic rubber, carbon black, petroleum-based inputs and freight expenses driven by crude oil price movements linked to events in West Asia.

India's tyre industry generates an annual turnover of approximately INR 1,000 billion and exports exceeding INR 270 billion, having recorded 16 percent YoY export growth in Q1 of FY2026-27.

Arun Mammen, Chairman of ATMA, said, “Tyre manufacturers rely on the peak tapping season to secure domestic rubber for their production schedules. This year, supplies are falling short even during these months, while procurement costs have risen sharply. A temporary duty-free quota, limited to the assessed shortfall, would help manufacturers maintain production while protecting the interests of domestic rubber growers.”

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The Goodyear Tire & Rubber Company has announced that Mark Stewart has stepped down from his roles as Chief Executive Officer and President of the company and has also left its board of directors, effective immediately. In his place, the company has installed board member Roger Wood as interim Chief Executive Officer, with Wood leading the tyre maker while a leading executive search firm helps the board identify a permanent successor.

Wood joined the board in 2023 and has spent over 30 years leading businesses in the automotive and manufacturing sectors. He was previously Co-Chief Executive of Tenneco Inc., which designs, manufactures and distributes clean air, powertrain and ride performance systems worldwide for vehicle manufacturers and the aftermarket, and he holds board seats at PHINIA Incorporated and Brunswick Corporation. As part of taking the interim role, he has given up chairing the board's human capital and compensation committee.

Earlier this year, the board set up a special committee to scrutinise the company's businesses and operations, seeking ways to lift performance and deliver more value to shareholders. Directors and management are pursuing that effort through a wide-ranging assessment of strategic and operational options, among them refining the business mix and footprint, sharpening efficiency and funding new products and capabilities that underpin long-term growth. No further updates are planned unless and until the board concludes that more disclosure is warranted or required.

In a separate announcement dated 27 October 2026, Goodyear said Jerome Rouquet will become Executive Vice President and Chief Financial Officer on 1 December 2026. Rouquet, now Chief Financial Officer at Visteon Corporation and formerly a senior finance executive at Tenneco and Federal-Mogul, takes over from interim Chief Financial Officer Scott Deakin, who will help ensure a smooth handover.

Joe Hinrichs, Goodyear Board of Directors Chair, said, "Goodyear has made meaningful progress in becoming a more efficient and focused company, and the board believes this is the right moment to transition leadership to accelerate that progress and capture additional opportunity. Roger brings extensive automotive and industrial CEO experience, deep operational expertise and strong relationships across OEMs and aftermarket customers. He knows Goodyear, understands the opportunities ahead and has the board's full confidence to bring heightened focus and urgency to execution while we conduct a thorough search for a permanent CEO. We thank Mark for his contributions to Goodyear.

"The board formed a special committee earlier this year to conduct a rigorous strategic review of the company to help strengthen performance and create shareholder value. The board, together with the Enterprise Transformation Office, is evaluating a broad range of strategic and operational opportunities, and we are committed to taking the right actions to position Goodyear for stronger performance and long-term success. We look forward to providing an update as this work progresses."

Wood said, "Goodyear has iconic brands, talented people and significant opportunities to improve performance and deliver long-term value. As I step into this role, my immediate priorities are to support our associates and customers, sharpen execution and build on the work already underway to advance Goodyear's transformation. I look forward to working closely with the board, leadership team and the Enterprise Transformation Office to advance the strategic review and translate that work into actions that strengthen performance and position Goodyear for long-term success."

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Michelin Group has appointed Terry Redmile as Chief People Officer for Michelin North America, Inc. In his new capacity, he will direct employee-focused operations throughout the North America Region, encompassing the recruitment, growth and retention of leading talent. His appointment places a seasoned internal leader at the helm of the company's people strategy.

A veteran of over three decades with Michelin, Redmile started as a co-op student at the firm's Greenville research and development centre. His tenure has spanned roles such as quality engineer and site director at the Fort Wayne, Indiana, manufacturing plant, culminating most recently in his position as senior vice president of manufacturing operations for the Americas. He also holds an MBA from Clemson University and a mechanical engineering bachelor's degree from the Georgia Institute of Technology.

Matthew Cabe, President and CEO, Michelin North America, Inc., said, “Terry understands our business, but more importantly, he understands our employees. His foundation in manufacturing and engineering gives him a firsthand understanding of where so many of our employees work every day and what they need to succeed. That perspective will be invaluable in this role.”

Redmile said, “The strength of Michelin has always been rooted in the strength of our talented teams. I’ve had the privilege of working alongside employees across our operations, and they are at the heart of what drives us forward. I want to build on that foundation and help our people continue to learn, innovate and shape what comes next for our industry.”

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Apollo Tyres, one of the leading manufacturers of tyres in India, has reported its financial results for Q2 FY2027 and H1 FY2027, alongside announcing the appointment of Ravi Kumar Shingari as its new Chief Financial Officer, effective 4 November 2026.

In his new role, Shingari will be reporting directly to Vice-Chairman and Managing Director Neeraj Kanwar. He joined Apollo Tyres in 2018 as Group Head of Finance and subsequently managed functions across budgeting, accounts, investor relations, and legal affairs, following a 16-year tenure at KPMG as Partner in Tax and Regulatory.

The company announced that its consolidated revenue from operations for Q2 grew by 17 percent YoY to INR 79.68 billion, compared to INR 68.31 billion in the corresponding period of the previous fiscal year.

Operating profit for the quarter stood at INR 8.55 billion, while net profit grew 13 percent to INR 2.92 billion, as against INR 2.58 billion in Q2 FY26. The net profit figures include an estimated pre-tax restructuring cost of INR 260 million recorded as an exceptional item.

For H1 FY2027, revenue reached INR 153.66 billion, up 15 percent from INR 133.92 billion in H1 FY26, with operating profit closing at INR 17.23 billion and net profit at INR 6.41 billion.

Onkar Kanwar, Chairman, Apollo Tyres, said, "Growth across categories in India has been supported by our sustained rural expansion efforts and strategic association with cricket. In addition, the launch of new products in the commercial vehicle segment in India has strengthened performance during the past quarter. At the same time, geopolitical tensions in West Asia remain a headwind, resulting in elevated input costs and supply chain disruptions."

Also read: Apollo Tyres Appoints Abhineet Kothari As India Business Head For Vredestein

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