Yokohama Rubber Co in Hangzhou. [Photo/WeChat account: XS_HEDA]

Yokohama Rubber Co began construction on a $500 million smart factory in Hangzhou's Qiantang district on Dec 16, its largest foreign-funded manufacturing project in the past decade.

The facility, set to start production by late 2025, will boost annual tire output from 6 million to 9 million units, with a future target of 14 million. It will focus on high-value products, including larger tires and tires for new energy vehicles, with an estimated annual output value of 3.5 billion yuan ($480 million).

Yokohama Rubber first entered Hangzhou in 2001, establishing its first Chinese tire production base. The decision to reinvest highlights Hangzhou's robust automotive supply chain and favorable business environment.

"From signing to groundbreaking, it took just six months. This new facility in Hangzhou is the fastest-built factory in our global portfolio," said Masataka Yamasaki, chairman and CEO of Yokohama Rubber Co. He expressed confidence in the factory's ability to strengthen partnerships with Zhejiang-based automakers, driving the region's automotive industry forward.

Qiantang, home to nearly 200 automotive firms including Geely and Ford, accounts for 95 percent of Hangzhou's vehicle production. From January to September 2024, it produced 150,000 vehicles, with the intelligent automotive and equipment sectors generating 85.98 billion yuan in revenue, an 8.6-percent year-on-year increase.

A rendering of the smart factory in Qiantang district. [Photo/WeChat account: XS_HEDA]