In an insightful discussion with Tyres & Accessories (T&A), Paolo Pompei, Chief Executive of Yokohama TWS, shared the company’s journey and achievements one year after its acquisition by The Yokohama Rubber Co., Ltd. The interview, held at the Yokohama TWS headquarters in Tivoli, Italy, sheds light on the strategic developments and challenges that have shaped the company's first year as part of Yokohama.
The acquisition of Trelleborg Wheel Systems by The Yokohama Rubber Co., Ltd. in May 2023 marked a significant milestone for both companies. The deal, valued at €2,074 million, led to the establishment of Yokohama TWS, a new entity within the Yokohama group. Over the past year, the focus has been on integrating Trelleborg Wheel Systems into Yokohama’s operations while maintaining the strong foundations that made it a valuable acquisition.
Pompei highlighted the semi-autonomous operational model of Yokohama TWS, which has allowed it to maintain a degree of independence while actively collaborating with other Yokohama off-highway businesses, including ATG and Aichi. This balance of autonomy and collaboration could provide a blueprint for how Yokohama might manage future acquisitions, such as its recently announced purchase of Goodyear's OTR business.
The integration process has not been without its challenges. Maintaining operational efficiency while aligning with Yokohama’s broader strategies required careful planning and execution. The semi-autonomous structure aimed to preserve the agility and customer focus that were hallmarks of Trelleborg Wheel Systems, while also leveraging the synergies and strengths of the larger Yokohama group.
A key priority for Yokohama TWS in its first year has been enhancing customer productivity. This focus reflects the company’s commitment to delivering high-quality products and services that meet the evolving needs of its global customer base. Pompei emphasized that despite the complexities of the acquisition and integration, customer satisfaction and product quality remained at the forefront of their efforts.
The timing of the interview coincided with two major announcements that underline the dynamic nature of the off-highway tyre industry. Yokohama’s agreement to acquire Goodyear’s OTR business and Pompei’s recent appointment as CEO of Nokian Tyres are both indicative of the strategic moves Yokohama is making to strengthen its position in the market. These developments not only highlight the growth trajectory of Yokohama TWS but also suggest a broader strategy aimed at consolidating Yokohama’s footprint in the global off-highway tyre sector.
Pompei’s reflections on the first year post-acquisition revealed several challenges, including the integration of operations, maintaining customer focus, and preserving company culture. The need to align Trelleborg Wheel Systems with Yokohama’s operational standards while ensuring that customer relationships and product quality were not compromised was a delicate balancing act. Additionally, adapting the company’s market positioning within Yokohama’s off-highway portfolio posed its own set of challenges, as did the task of leveraging synergies without losing the strengths that made Trelleborg Wheel Systems an attractive acquisition.
As Yokohama TWS enters its second year under the Yokohama banner, the company appears well-positioned to build on the progress made so far. The integration efforts, customer-centric approach, and strategic acquisitions suggest a clear vision for the future. Pompei’s leadership, now extending to Nokian Tyres, will likely continue to influence the direction of Yokohama TWS and its role within the broader Yokohama group.
This interview with Paolo Pompei offers a valuable glimpse into the first year of Yokohama TWS's operations post-acquisition and provides context for understanding Yokohama’s broader strategy in the off-highway tyre segment. Read the article in full [HERE]
