Yokohama Tire Corporation (YTC) Chief Operating Officer Takayuki Hamaya examines the company’s performance in 2013 and shares an outlook with industry publications on what the company – and the tire industry in general – can expect in 2014.
Question: Compared to 2012, how was 2013 for Yokohama?
Hamaya: 2013 was historical year for Yokohama. In April, we announced the building of a commercial tire plant in West Point, Mississippi, and in September, we broke ground at the site. It’s very significant because it’s the first plant we’re building in the U.S., and when it opens in October 2015, it will eventually produce 1 million tires annually.
The decision to build in the U.S. was a long-time dream for Yokohama. Now there are many new possibilities and this is just the beginning. We have enough space at the plant to expand. This offers us new capabilities and strategies.
Question: How did the market segments of consumer, commercial and off-the-road tires perform compared to each other?
Hamaya: We saw growth in both the Consumer and Commercial segments in 2013. Demand really began to get stronger for both Consumer and Commercial tires from the second quarter, through the end of the year. The Off-The-Road (OTR) category was a lot softer than we would have liked, but it wasn’t unexpected.
Question: It seems like the consumer segment hasn’t gained traction the past couple of years. Why is that?
Hamaya: We are seeing an increase in demand in the consumer market, but it has not happened as quickly as we would have expected. Market conditions have played a big factor. The total demand for consumer tires was up vs. 2012, but the market share for the U.S. industry as a whole was down due to the continued influx of Chinese imports.
The good news is that the U.S. economy is picking up and total demand is increasing.
