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Yokohama says higher tire demand calls for plant

Monday - 4/29/2013, 5:40pm  ET

WEST POINT, Miss. (AP) -- Executives with Yokohama Rubber Co. Ltd. say they'll build a new tire plant in Mississippi because they see a global supply shortage for tires.

State and company officials gathered Monday to celebrate the company's plans to build a factory near West Point.

The company plans to invest $300 million, hiring 500 people, in a first phase, and could invest $1.2 billion, hiring 2,000 people, over time. In exchange, state and local governments could give more than $340 million in aid and tax breaks.

Takayuki Hamaya, chief operating officer of Yokohama Tire Corp., the company's American subsidiary, says it makes sense to build a truck and bus tire plant in the United States because that's where Yokohama sells the most commercial tires.

The company now makes tires in Virginia and Illinois.


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