Interview with Gao Jingxing, Chairman of Yokohama Rubber (China) Co., Ltd.

Since the establishment of Yokohama Rubber in Japan in 1917, it has established itself as a comprehensive rubber manufacturer in the long years of more than 90 years, and has grown into the top seven tire rubber manufacturers in the world. The experience and technology accumulated over a long period of time has also become an irreplaceable asset.

Yokohama Rubber, which started with rubber polymer chemistry, has an outstanding performance in the automotive-related field, including tires, and has an internationally renowned brand, YOKOHAMA. At the same time, it has extensively absorbed technical experience, not only in the rubber field, but also in the fields of metal and light composite materials.

 

At present, Yokohama Rubber has achieved outstanding results in the fields of industrial products, aviation parts, and sporting goods, and is committed to providing excellent technology and excellent products to a wide range of fields.

Yokohama Rubber (China) Co., Ltd. was established in Shanghai in November 2005 and is a wholly-owned subsidiary of Yokohama Rubber Co., Ltd. in China. The company is mainly engaged in the operation and management of a total of six companies in its five tire and rubber products production plants and one sales company, and invests and expands its emerging projects in China. At present, nearly 2,000 Youke Haoma tire sales service outlets have been established in 30 provinces, autonomous regions and municipalities directly under the Central Government, forming a sales and service network covering all of China. Today, Yokohama Rubber has invested more than US$300 million in China and will continue to expand in its future business.

Yokohama Rubber Group, in its long history, always regards "continuously creating happiness and wealth with products that unite our sincerity and technology" as the basic concept of the company, and adheres to this purpose.

Yokohama Rubber has introduced tubeless tires, snow tires, and steel cord conveyor belts for the first time in Japan. As a pioneer of the times, it has introduced a large number of advanced products across the age. It can be said that Yokohama Rubber is committed to the development of its business through the spirit of “aggressiveness” under the guidance of a consistent corporate strategy while focusing on tradition.

Since the establishment of Yokohama Rubber in Japan in 1917, it has gone through a long period of 92 years. It has established itself as a comprehensive rubber manufacturer and has grown into the top seven tire rubber manufacturers in the world. A few days ago, the reporter interviewed Gao Jingxing, chairman of Yokohama Rubber (China) Co., Ltd. Takahashi, who joined Yokohama Rubber Co., Ltd. in 1974, was deeply impressed by the company and had deep insights. He told reporters about the solid journey of Yokohama Rubber for 92 years.

Starting in Yokohama, going to the world

When talking about the beginning of Yokohama Rubber, Takai Singo was as proud as introducing his children's outstanding achievements. He told reporters that Yokohama Rubber was originally founded in 1917, when it was jointly established by the famous American rubber company BFgoodrich (Broadridge) and Japan's Yokohama Electric Wire Manufacturing Co. At that time, Yokohama Electric Wire Manufacturing Co., Ltd. was now the Furukawa Electric Industrial Co., Ltd., and is affiliated to the Japanese industrial chaebol Furukawa Group.

Most customers are familiar with Yokohama Rubber's YOKOHAMA tires, but in fact, Yokohama Rubber not only produces tires, but also produces high-pressure hoses, sealing materials and industrial conveyor belts. In particular, the YOKOHAMA conveyor belt has been widely recognized as a high-quality brand-name product for many years in the world. Among them, the "wire rope conveyor belt" which was first developed in Japan and enables long-distance transportation has the highest technical level in the world. The "high-temperature heat-resistant conveyor belt" that can be used in harsh environments also fully proves the excellent quality of Yokohama rubber.

After successfully stabilizing the domestic market, every ambitious company hopes to enter the overseas market. Yokohama Rubber, which has always followed the international route, is no exception. After the end of World War II, Yokohama Rubber launched its export work, bringing YOKOHAMA products to the world market, and won the recognition of foreign users with high-performance quality. As the world's seventh-largest tire manufacturer, Yokohama Rubber has achieved outstanding results in the fields of industrial products, aviation parts, and sporting goods, and is committed to providing excellent technology and excellent products to a wide range of fields.

In the GD100 program launched in 2006, Yokohama Rubber has a target of 1 trillion yen in sales, 100 billion yen in profit, and a 10% increase in operating rate. Gao Jingxing told reporters that "China is a very crucial part of achieving this historic great goal."

Entering China, stabilizing

When it comes to the business of Yokohama Rubber in China, Takarai is more talked about. In his introduction, the reporter learned that in 2001 Yokohama Rubber set up a car radial tire factory in Hangzhou, this move marks the official entry of Yokohama Rubber into the Chinese market. Since then, in 2004 Yokohama Group has successively invested in Yokohama Sealing Materials (Hangzhou) Co., Ltd., which manufactures sealing materials, and Yokohama Hose Accessories (Hangzhou) Co., Ltd., a high-pressure hose assembly plant. As the Group's investment in the Chinese market increased, in 2006, Suzhou Yokohama Tire Co., Ltd. was established in Suzhou, and Weifang in Shandong Peninsula established a joint venture with local Chinese companies to establish Shandong Yokohama Rubber Industrial Products Co., Ltd. In terms of investment sales, Yokohama Rubber (China) Co., Ltd. was established as an investment company in 2005, and played the role of China's business headquarters. In 2006, Yokohama Tire Sales (Shanghai) Co., Ltd. was established in Shanghai.

"At present, Yokohama Rubber's investment company in China, together with a tire sales company and five tires and other rubber products production plants, has formed the Yokohama Rubber China Group. Nearly 2,000 Youke have been established in 30 provinces, autonomous regions and municipalities in China. "Horma's tire sales and service network has formed a sales and service network covering all of China." Gao Jing proudly told reporters, "Now, the investment of Yokohama Rubber in China has exceeded 300 million US dollars, and will continue to expand in the future. ""

It is worth noting that Yokohama Rubber's investment has its own unique style. Gao Jing pointed out: "We are not rushing into the Chinese market with high stalwart, but gradually expanding the scale of investment in China, increasing production plants in China, stabilizing and steadily, step by step, and indeed enhancing the brand awareness of Yokohama Rubber. ""

When talking about the specific mode of operation, Mr. Takai explained to reporters, "We have adopted a scientific small-scale production method. By making the factory modular, the production capacity of each module plant is about 1 million tires per year. Scale, production capacity is not large, but very flexible, can increase the total production volume according to market demand, control the investment of each phase, keep production and sales in balance, improve investment efficiency, and manage production to the maximum extent."

Because of the basic policy of long-term business operations in China mentioned above, Yokohama Rubber has already gained a certain market share in China and achieved quite good results. A highly unified operating system that “provides the best products at the most reasonable price in a timely manner”; realizes the operating system in which the Japanese and the local Chinese are united; and promotes all YOKOHAMA sold in China. The development of brand products has stabilized the position of high-end brands, and pursues career development with the tenet of customer satisfaction first, quality first and environmental protection first.

Looking to the future, full of confidence

When the reporter asked about Yokohama’s plans for the Chinese tire market in the coming year, Gao Jing smiled. He said, “Yokohama Rubber does not make a specific plan every year, but will formulate a medium- and long-term business plan.” To the reporter's question, Takashi further explained, “The company will celebrate its 100th anniversary in 2017, so in 2006, a long-term plan of 12 years was called Grand Design 100 (GD100). The first phase of a plan was completed last year, and this year began to enter the second phase. The company hopes that in China, Yokohama Rubber will not only sell tires, but also gradually introduce the advanced products of Japanese companies into the market. To enhance the brand awareness of Yokohama Rubber, For high-end cars with high-end products, customers can go back and buy YOKOHAMA tires, so that production and sales grow together."

According to GD100, by the 100th anniversary of the company's establishment in 2017, Yokohama Rubber's overall operating income in China will have to double, and the profit ratio should be guaranteed at around 10%. At the same time, Mr. Takai showed great confidence in the Chinese market. He believes that in a market full of hope and potential in China, development will be faster than planned.

By 2017, Yokohama Rubber will provide more and higher levels of products to compete in the market. We will not participate in low-price wars too much, but we will sell more high-end products to our customers, and strive to win the recognition of customers, so that customers believe that the brand of YOKOHAMA is trustworthy.

Finally, Gao Jing said with a smile, "I hope that when customers use our tires in the future, they will not care where it is produced. As long as it is produced by the YOKOHAMA brand, the quality will be the same. ”