Yokohama to close Israeli facility amid Yemeni operations
3 Min Read
Alliance Tire in Hadera, which has been owned by the Japanese company Yokohama Rubber since 2016, will reportedly halt operations on December 31, 2024.
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Yokohama tires on display (yokohamatire.ph)
Alliance Tire in Hadera, which has been owned by the Japanese company Yokohama Rubber since 2016, is facing a significant wave of layoffs and may even shut down 75 years after its founding, according to a statement from its website.
The owner is reportedly seeking more cost-effective production options and reduced shipping costs, with most of its production being exported. Additionally, costs have increased since the onset of the Israeli war on Gaza due to the Yemeni Armed Forces attacks in the Gulf.
Dive deeper
Established in 1950 by a group of Israeli and American investors in collaboration with Solel Boneh, the factory faced financial difficulties in 1992. It was acquired by Eliezer Fishman and floated on the Tel Aviv Stock Exchange (TASE) in 1993. After improving the company’s financial situation, Fishman sold Alliance to Warburg Pincus in 2007 for $50 million.
Under Warburg Pincus, the company shifted production of basic tires to India while specializing in agricultural tires that required more advanced technology. In 2013, Warburg Pincus sold Alliance to KKR for $600 million, and three years later, it was sold to Yokohama Rubber for nearly $1.2 billion.
Now known as ATG (Alliance Tire Group), the company grew to manufacture tires for agricultural, industrial, construction, and afforestation machinery. At the time of its acquisition by Yokohama, ATG was selling products to 120 countries, primarily in North America and Europe. Currently, 20% of its activities are based in "Israel", with the remainder in India. Before purchasing ATG, Yokohama did not manufacture tires in ATG’s specialized sectors, and the acquisition helped broaden Yokohama's product portfolio.
The big picture
Israeli Channel 12 reported that the factory has laid off 450 employees as part of its restructuring.
It is worth noting that Yemen continues carrying out critical military operations against the Israeli occupation in support of Palestine, Lebanon, and the Resistance. The country has gradually escalated the intensity of its operations, as it previously vowed, in response to the continued aggression in the region.
The Yemeni Armed Forces have constantly reaffirmed their commitment to enforcing a naval blockade on the Israeli occupation, vowing to target any vessels associated with or bound for occupied Palestine.
