Pampanga, Philippines—Department of Trade and Industry (DTI) Secretary Fred Pascual reaffirmed the Philippine government's steadfast commitment to fostering a robust business environment for foreign investors. This came during the groundbreaking ceremony of Yokohama Tire Philippines Inc.'s (YTPI) landmark P3.5 billion expansion project on July 29.
“The Philippine government, under the leadership of President Marcos Jr. and its vision of Bagong Pilipinas, is committed to supporting foreign investors like YTPI,” Secretary Pascual said.
Set to be operational by the second quarter of 2026, the facility expansion will elevate YTPI's production capacity by 5%, generate 500 new jobs, and solidify the company's position as a leading player in the tire manufacturing sector.
In 2020, the company's strategic partnership with the DTI to source natural rubber from Mindanao not only ensured a stable income for local farmers and rubber processors but also contributed to the development of the domestic rubber industry. Currently, YTPI sources 54% of its rubber needs locally, playing a crucial role in the industry's sustainability and growth.
These local sourcing efforts support the government's initiatives to promote rural and agricultural development. By 2026, the company aims to source 100 percent of its natural rubber domestically, a significant increase projected to reach 30,000 metric tons annually, with a potential value of P1 billion.
Commercial Counselor Dita Angara-Mathay, DTI Lead Officer in Japan, highlighted that the YTPI’s investment expansion project attests to the progress of the country's rubber industry development plan led by the Department.
A key component of this program is the active promotion of investments in rubber-based product production. This initiative aims to create a comprehensive value chain, enhancing integration across the upstream, midstream, and downstream sectors.
To further attract investments in this sector, the DTI has initiated policy reforms that have opened key sectors to foreign investments, while the establishment of green lanes for strategic investments has fostered transformative infrastructure partnerships.
These strategic moves are expected to be further bolstered by the recent Trilateral Summit between the Philippines, Japan, and the United States, which is poised to catalyze foreign investment, particularly in the rubber industry within the Luzon Economic Corridor.
This increase in foreign investment will be supported by significant infrastructure development within the Luzon Economic Corridor. Three major projects planned in the region—the Subic-Clark-Manila-Batangas Railway System, the Clark International Airport expansion, and the Clark National Food Hub—will directly benefit foreign companies like YTPI, further enhancing the region's attractiveness to international investors. PR
