Fazenda Rio Grande, Brazil – Sumitomo Rubber Industries Ltd (SRI) is investing over BRL1 billion (€175 million) in its tire production facility in Fazenda Rio Grande, Paraná, in response to an anticipated growth of the market in coming years.
With the investment, SRI aims to increase its production capacity for passenger car and light truck tires from the current 18,000 units per day to 23,000 units per day by April 2024.
Furthermore, the project will raise production capacity for truck and bust tires at the site from 1,000 units per day to 2,200 units per day by April 2025, SRI announced 26 July.
Operational since 2013, the factory currently employs just under 1,600 people.
Despite a decline in demand during 2020, SRI said it expected market growth in Brazil to exceed pre-pandemic levels in 2021.
In addition, the Japanese tire maker anticipates that the market will continue to grow at a rate of 2-3% per year after 2021.
By increasing production capacity at its Brazilian site, SRI said it further strengthens its sales in the local market while taking “a major step forward” in expanding its global business.