THE Philippines eyes the supply of natural rubber to tire maker Yokohama Rubber Co. Ltd. with a potential value of P1 billion.
Secretary Alfredo Pascual of the Department of Trade and Industry (DTI) told reporters the agency targets to supply 100 percent of the rubber requirements of Yokohama Tire Philippines Inc., the sole tire manufacturer in the country with operations in Clark.
At present, Yokohama sources only 51 percent of its rubber requirements locally and imports the rest from neighboring countries like Malaysia.
Yokohama is planning to invest $60 million to its increase capacity by 5 percent or another 500,000 tires per year.
“But the sad part is the sourcing of natural rubber is not fully met by (local) suppliers,” Pascual said,
He said the DTI has committed to help Yokohama to source in Mindanao to add local value to tires being produced while providing additional income to rubber farmers.
Yokohama produces around 10 million tires per year and export the same globally.
Pascual said the DTI will coordinate with its counterpart in the Bangsamoro Autonomous Region in Muslim Mindanao on how it can assist Yokohama.
“We have to do our part. One of our strategies is direct intervention not just policy,” Pascual said.
