With our technical support and their manufacturing capabilities, it’s a win/win for both of us. We’re trading technology for products. Shandong Xingda is also in the giant radial business, which means we can accelerate quickly in that market.

Question: Any idea when the tires will start to be produced from that factory?

Nash: The agreement was signed on August 2, so we don’t have a specific timetable yet. Our engineers are in China studying the building process and technology needs. This is exciting to us as it moves us closer to our goal of expediting our production to satisfy demand for our product. 

Question:  Once the factory starts producing tires, where do you think they’ll be allotted?

Nash: The products are likely to go global, where demand is the strongest. We are still mass-producing OTR tires at our Japanese Onomichi plant, but it’s not able to meet the global demand for OE replacement. The Chinese factory is certainly a step in the right direction. It takes millions of dollars to build 51-, 57- and 63-inch tires, so having the technical arrangement will help us enter the market faster.

Question:  Any comments from dealers and end-users on the deal? 

Nash: The dealers are excited that it’s a Yokohama brand tire and has our technology. With the support of the Chinese factory and the strength of the Onomichi plant, we’ll be able to fulfill our obligations long-term, which will strengthen us as a leader in the OTR industry. We’ve been a major player, and we want to remain an industry leader. Our plan is to continue to offer the best technology, service and educated sales force in the world.

Question:  Can you go over some of the recent changes in Yokohama’s OTR department? 

Nash: We lost an industry icon earlier in the year when Nelson Richards passed away. He was my right arm for 15 years and our national sales manager. A person with that much experience is very hard to replace.  However, we’ve always prided ourselves in having a strong bench. We promoted Mike Baggett to national sales manager to replace Nelson; promoted Tim Easter to director of sales and marketing; and assigned Joe Garcia as manager of OTR sales in Mexico. Combined, these individuals have decades of OTR experience, are dealer-friendly and have expansive dealer network.  

Question: What new tires will Yokohama be displaying at MINExpo?

Nash:  We’ll have three new radial tires, which are the RL45, RB42 and RL51 in our booth (#8271).

The RL45 is very versatile and will run on articulated dump trucks, loaders and underground vehicles. It comes in two sizes: 26.5R25 E2 and 26.5R25 L1.  It’s a good addition to our line-up of loader radials. In 2013, we plan to add a 35.6533 radial. 

The RB42 is designed for dump trucks and comes in four sizes: 18.00R33, 24.00R35, 27.00R49 (with cut-protected compound) and 27.00R49 (with regular compound). Testing has been completed, with the tire slated for mass-production in 2013. It’s our first entry into the X-large radial. 

The RL51 is a motor grader tire for mining and construction and comes in a 23.5R25. It has a very deep tread and its cut resistance is extremely good. There’s a strong demand for this tire – the annual replacement demand is approximately 9,000 units in the U.S. market.

Question: The BRIC countries (Brazil, Russia, India and China) are the heavy users of OTR tires. Are there any new, emerging countries becoming players in the market?

Nash: Indonesia has always been a player and is still growing. Mongolia is also big because they have enough coal to supply all of China for 50 years. This is a huge opportunity for Yokohama, considering our deal with the Chinese plant. Taking the same technology we’ve had in the past and applying it to new-generation products we’re going to build, we can only expect to continue being a major contender moving forward.

–Article courtesy of Yokohama Tire Corp.