Yokohama Rubber Co., Ltd. has released its medium-term management plan – called Grand Design 2020- that will guide the company’s development through to the next decade.
The plans calls for the company to redefine its core strengths and address strategic priorities in each sector of its operations.
In consumer tires, for example, the company plans to expand its presence in the market for premium-grade tires. The plan characterizes commercial tires as a pillar of sales and earnings in Yokohama’s second century. It also positions off-highway tires as a pillar of that growth. The company’s strategy under the plan calls for allocating resources on a priority basis to sectors of strength.
Three priority areas the company emphasized in the plan to strengthen its business foundation include: reducing interest-bearing debt and idle assets, revitalizing Yokohama’s corporate culture through human resources initiatives and minimizing corporate risk through systematic management.
Financially, the plan says Yokohama’s goal is to raise net sales to ¥700 billion (approx. $6.6 billion), up 8.3% over 2017, and raise operating income to ¥70 billion (approx. $657 million), up 29.1%.
Other initiatives outlined in the plan include:
- Asserting the company’s leadership in studless snow tires for Japan, in studded snow tires for Northern Europe and Russia, and in winter tires for other European nations.
- Building on the business scope of the Yokohama subsidiaries, inlcuding Alliance Tire Group, which manufactures tires for agricultural and forestry machinery, and Aichi Tire Industry, which manufactures tires for industrial machinery.
- Making the most of the company’s Mississippi plant to strengthen its position in high-quality products and flexible supply capabilities. That plant has greatly upgraded Yokohama’s capacity for serving the huge North American market, the plan says.
To see other highlights of the Grand Design 2020 plan, click here.
