Challenging availability of components. Rising prices for raw materials such as natural and synthetic rubber. Increased freight cost. Most of the additional costs will not affect YOHT EMEA customers (Alliance and Galaxy brand).
The situation on global commodity and freight markets currently leads to major effects for Yokohama Off-Highway Tires in terms of availability of, and cost for raw materials and shipment. Prices for natural rubber, synthetic rubber, and chemicals, etc. have seen a severe increase – the same is true for ocean freight cost. Despite these very challenging conditions, customers will only face a fairly moderate increase in tire prices.
“The rising cost of some major raw materials is becoming more and more of a challenge, and prices are going through the roof”,
says Angelo Noronha, President EMEA at Yokohama Off-Highway Tires. He continues:
“In sum, this makes for strong effects, most of which will be absorbed by YOHT EMEA and hence will keep consequences for our customers to the minimum. However, a 4.5 to 5.5 percent increase of prices will be inevitable.”
The first price increase of 4.5% to 5.5% was implemented on Jan. 1, 2021. The new pricing will apply to the entire portfolio of Yokohama Off-Highway Tires EMEA (Alliance and Galaxy brand) and will take effect from April 1, 2021.