Yokohama to stop tire production in Russia over problems buying raw materials

LIPETSK. March 23 (Interfax) - Japan's Yokohama Rubber Company will gradually halt production at its Russian subsidiary LLC Yokohama R.P.Z., located in the Lipetsk special economic zone, the tire company said in a statement.

"Taking into account the current situation and the difficulties purchasing raw materials, Yokohama Rubber has made the decision to gradually cease production at its Russian tire-manufacturing subsidiary LLC Yokohama R.P.Z.," the statement said.

The company expressed hope for a quick resolution of the situation between Russia and Ukraine.

"Our main priority is fulfilling our obligations before all parties concerned, including the group's employees and their families, customers, sales agents, and business partners, and we are following the development of the situation closely," the statement said.

Lipetsk Region Governor Igor Artamonov said on Telegram that various agencies are ready to help the enterprise adapt to the new logistics situation.

"We are prepared to provide assistance through the Industry and Trade Ministry and the Transport Ministry in order to speed up the process of delivering materials," Artamonov said.

The company plans to keep its staff at the enterprise in Lipetsk, Artamonov said. "Management has provided assurances that the company is interested in all of its employees continuing to work at the factory. We'll monitor," he said.

The regional administration told Interfax that around 760 employees work at the factory.

Yokohama R.P.Z. was founded in 2008 in the Gryazinsky district of the Lipetsk region and was the first enterprise to manufacture Yokohama car tires in Russia. Investments amounted to 26.7 billion rubles. The factory uses equipment imported mainly from Japan and Europe.

Japan's Yokohama Rubber Company was founded in 1917. Yokohama factories produce tires for passenger vehicles, trucks, buses, and heavy machinery, as well as industrial rubber goods.