Japan based Yokohama Rubber has signed a contract for the construction of a commercial truck tire plant in West Point, Mississippi in the US.
The company will initially invest $300m in the facility, while the potential plant expansions are expected to reach about four times the original employment and investment levels.
Construction of the plan will be done on a land having an area of over 500 acres and is expected to begin in September 2013.
Yokohama Rubber president and representative director Hikomitsu Noji said Yokohama has been on a continual growth since the company's entry into the US market.
"Now we will build a factory in the US for the first time," Noji added.
Expected to start its operations in 2015, the plant will have a capacity to manufacture one million tires and is expected to hire about 500 employees.
In 1980s, Yokohama had entered the US market with acquisition of a plant in Salem, Virginia.
