Osaka, Japan – Sumitomo Rubber Industries, Ltd. (SRI) is to begin production of truck and bus tires at its factory in Brazil, the Japanese tire-maker announced on 20 July.
The group is investing 312 million reals (€87.2 million) to install new production equipment at the plant in Fazenda Rio Grande, Parana.
Set to begin production in March 2019, the plant’s capacity is 500 tires per day and aims to supply the domestic market in Brazil.
The group’s Brazil factory began producing passenger car tires in October 2013 and currently has a capacity of 15,000 tires per day.
SRI also said that it was planning to invest a total of 175 million reals to increase production of passenger car and light trucks tires at the Brazilian facility as of 2017.
The group’s Brazilian subsidiary currently imports truck and bus tires for the Brazilian local market.
However, said SRI, “as the Brazilian market for these tires is expected to grow by about 2 percent each year for the foreseeable future, we have decided to take this step.”
The decision, argued SRI, will help the group avoid currency fluctuation risks in Brazil.