KOBE, Japan—Sumitomo Rubber Industries Ltd. is doubling the scale of an ongoing expansion project at its tire plant in Fazenda Rio Grande, Brazil, to 1,000 truck tires a day to meet "steadily growing" demand for truck/bus tires in the country.
The expansion revision will require an additional $37 million capital investment, Sumitomo said, or a 49 percent increase of the investment announced in July 2016.
SRI said demand for truck/bus tires in Brazil is growing at 2 to 3 percent a year "for the forseeable future," and this additional expansion will help the company ensure a steady supply of locally produced products while also avoiding currency fluctuation risks inherent in import/export.
Sumitomo opened the plant in October 2013, producing passenger and light truck tires initially.