KOBE, Japan—Sumitomo Rubber Industries Ltd. is setting up a sales subsidiary in Australia to help strengthen sales of its Sumitomo and Falken brands to the Australian replacement market.
The new subsidiary, Sumitomo Rubber Australia Pty. Ltd., will be based in Sydney, New South Wales, and is scheduled to begin operations in March.
It will be 75-25 joint venture with Sumitomo Corp., which already operates a company, Summit Tyres Australia Pty. Ltd., of Moonee Ponds, Victoria, that imports and distributes the Sumitomo brand throughout Australia.
SRI has budgeted $20 million toward establishing the subsidiary, which will employ up to 60 workers once fully operational. SRI did not disclose its sales expectations in Australia under the new subsidiary.
SRI, through the new company, intends to acquire the tire division of Transport Tyre Sales, which now handles the Falken brand, in order to have control over the Falken brand.
SRI's Dunlop brand is handled in Australia by Dunlop Australia Ltd., which is controlled by Goodyear.