Fazenda Rio Grande, Brazil - Sumitomo Rubber Industries (SRI) is investing BRL 153 million (€32 million) into expanding its truck and bus tires production facility in Brazil.
The company announced the investment plan as it prepares to start production of truck and bus tires at the Fazenda Rio Grande plant next March.
“The aim of this increased investment is to position our group to be better able to respond to the steadily growing demand for truck and bus tires in the Brazilian market,” Sumitomo said in a 20 Sept statement.
In July 2016, the Japanese tire maker unveiled plans to build a €87-million truck and bus tire facility in Brazil. At the time, the production capacity of the plant was announced 500 units per day.
With the latest round of investment, the capacity will grow to 1,000 per day by October 2019, Sumitomo said.
Sumitomo’s factory in Fazenda Rio Grande, Paraná, has been producing tires for passenger cars and light trucks since October 2013.
The group's Brazilian subsidiary currently imports truck and bus tires for sale on the domestic market. Sumitomo expects demand for truck and bus tires in Brazil to grow by 2-3% per year “for the foreseeable future”.
The company is therefore enhancing its overall tire sales business in Brazil by delivering locally produced tires and avoiding currency fluctuation risks.