KOBE, Japan (July 28, 2010)—Sumitomo Rubber Industries Ltd. is planning to build a $297 million passenger tire plant in Changsha, China, with production expected to start by July 2012.
The plant in Hunan Province—Sumitomo's second in China—is being built to meet projected demand growth for car tires in China, SRI said.
To be built on a 5.94 million-sq.-ft. plot of land northeast of Changsha, the factory will hit 15,000 units daily by year-end 2014 and then double to 30,000 units daily by year-end 2017, Sumitomo said.
At the same time, Sumitomo is establishing a holding company in China to coordinate the activities of its existing and new operations.
Sumitomo opened its first tire plant in China, in Changshu City, Jiangsu Province, in 2004 for passenger, light and heavy truck tires. That plant's capacity is nearly 6,000 metric tons per month.