Yokohama Rubber Co. Ltd. will build a passenger tire manufacturing plant in Japan's Aichi prefecture.
The facility will build 18-inch and bigger high performance tires for cars and SUVs, according to Yokohama officials.
"Demand for such tires is increasing in Japan and elsewhere around the world."
Initial annual production capacity will be 300,000 units, eventually rising to 750,000 units per year.
Total cost of the facility is expected to be five billion yen.
Construction is scheduled to begin this spring.
"Yokohama Rubber is reinforcing its high performance passenger tire business in keeping with (its) Grand Design," a long-term initiative announced last November.