Background and History

The Hadera plant holds a significant place in tyre manufacturing history:

• Established in 1950, it was founded by Israeli and U.S. investors in cooperation with Solel Boneh.
• Acquired by Yokohama Rubber Company in 2016 as part of a $1.2 billion deal to purchase Alliance Tire Group (ATG).
• Over the years, the plant specialised in producing tyres for agriculture, forestry, construction, and industrial applications.
• The facility employed approximately 450-550 workers, making it one of the region’s largest employers.

Reasons for Closure

A range of economic and logistical challenges has driven Yokohama Rubber Company’s decision to close the Hadera plant:

1. Global Manufacturing Shifts: Many tyre manufacturers, including Yokohama Rubber Company, have increasingly moved production to South Asia to capitalise on lower labour costs, access to raw materials, and more efficient export routes.
2. Export Challenges: With most of the plant’s output destined for export, rising costs, exacerbated by recent geopolitical tensions and Gulf-region conflicts, have further eroded profitability.
3. Cost Optimisation: The company is restructuring to streamline its production network and address conversion costs, which have become uncompetitive compared to facilities in Asia.

Impact on the Community

The closure of the Hadera plant will have far-reaching effects:

• Job Losses: Approximately 450-550 employees will lose their jobs, impacting hundreds of families and the local community.
• Economic Ripple Effect: As one of Hadera’s largest employers, the plant’s closure will likely affect regional businesses and local suppliers.
• End of a Legacy: The closure marks the conclusion of a 75-year manufacturing legacy in Israel.

Yokohama Rubber Company’s Path Forward

While the closure is a significant step, Yokohama Rubber Company remains committed to supporting its employees and partners through the transition. The company is also focused on growth, particularly in the Off-Highway Tyre (OHT) segment, where it is the world’s largest manufacturer of agricultural tyres and a leading player in industrial tyres.

"Given the present market environment and the structural shift in the manufacturing footprint of the tyre industry, Yokohama Rubber Company must take this measure to bring the business back to a sustainable level of profitability and secure its future," the company stated.

Yokohama Rubber Company continues to prioritise efficient and sustainable manufacturing practices, adapting its global operations to meet evolving industry needs and customer demands.

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