KOBE, Japan (May 17, 2011)—Sumitomo Rubber Industries Ltd. is committing $345 million to build a consumer tire plant in Brazil in the coming two years as part of the firm's global expansion strategy.
The plant, with a projected capacity of 15,000 car tires a day, will be built on a 124-acre site near Fazenda Rio Grande City in Brazil's Parana State.
SRI said it expects to begin work on the project in July, with production scheduled to begin by October 2013.
The new company will be called Sumitomo Rubber do Brasil Ltda. The site is near the Atlantic Coast in Parana, southwest of Sao Paulo.
In disclosing its plans for the plant, SRI noted the rapid growth in vehicle manufacturing and ownership in Central and South America and said it picked Brazil as the site for its production base because Brazil is the largest market in the region and has high customs duties on imported tires.