Yokohama Rubber Company, a Japanese corporation, secures a mining industry tire factory in Romania through an acquisition.
That's the Scoop: Yokohama Rubber's Bold Move in Romania
Hear ye, hear ye:Japan's venerable Yokohama Rubber Co. Ltd., with a rich history of over a century, has snatched up a tire factory in the Romanian city of Drobeta Turnu Severin. The factory, a dusty relic of the 1970s-80s, belonged to the bankrupt Euro Tyres Manufacturing SRL, which stumbled into the abyss of insolvency in January 2025, after a tumultuous 7 years[1].
Pass the Popcorn:The 19-hectare industrial platform, complete with 38 buildings that housed production and administrative facilities, was up for grabs. Yokohama's bid of 35 million euros, plus VAT, was the only one placed. The deal, slated to be the cherry on top of Romania's industrial sector, is now under scrutiny by the Commission for the Examination of Foreign Direct Investments[1].
The Lowdown:The factory's specialized in pumping out tires for the mining industry and earth-moving heavyweights, that fits snugly into Yokohama's strategic push in the off-road tire (OTR) sector[2]. With annual revenues of over 7 billion dollars and profits nearing the half-billion mark, Yokohama's frontiers stretch across continents[5]. The conglomerate owns factories in 8 Japanese cities, with major investors being Japanese financial institutions[5].
Ponder This:The insolvent Euro Tyres Manufacturing, once boasting tens of millions in turnover and over 600 employees, started to bleed in 2018. Its final act saw losses ballooning to nearly 30 million euros, a dismal turnover of around 121,000 euros, and an average workforce of 31[1].
[1] Profit.ro[2] Rubber and Plastics News[3] Reuters[4] Romania Insider (subscription required)[5] Yokohama Rubber Corporation website
- Yokohama Rubber's acquisition of the tire factory in Drobeta Turnu Severin, once owned by Euro Tyres Manufacturing SRL, aligns with their strategic push in the off-road tire (OTR) sector.
- Despite once generating tens of millions in revenue and employing over 600 people, Euro Tyres Manufacturing, before its insolvency, encountered significant financial challenges, with average workforce shrinking to 31 and losses ballooning nearly to 30 million euros.
- The liquidator scrutinizing Yokohama's acquisition of the Romanian tire factory will report to the Commission for the Examination of Foreign Direct Investments.
- In addition to their factories in 8 Japanese cities, Yokohama Rubber's global footprint includes major shareholders who are Japanese financial institutions operating in the finance and fintech industries.
