FAZENDA, Brazil—Sumitomo Rubber Industries Ltd.'s Brazilian subsidiary has initiated production of truck and bus tires at its plant in Fazenda following a $133 million, three-year expansion project.
Sumitomo Rubber initially disclosed plans in 2016 to add truck tire capacity at its then three-year-old plant in Fazenda Rio Grande, then doubled the scale of the expansion last year to 1,000 units a day to meet "steadily growing" demand for truck/bus tires in Brazil.
Previously, Sumitomo Rubber do Brasil Ltda. imported truck and bus tires for sale in Brazil. With the start of local production, the firm is better able to ensure a steady supply of truck/bus tires in Brazil, where the market is expected to grow by 2 percent to 3 percent per year for the foreseeable future.
SRI opened the 5.38-million-sq.-ft. plant in Brazil's Parana State, southwest of Sao Paulo, in late 2013 after an investment of $345 million. Adding capacity for truck tires necessitated a physical expansion of the plant by about 144,000 square feet, SRI said.