QUERETARO, Mexico—Sumitomo Riko Co. Ltd. has seen demand rise in the North American commercial pickup truck market for anti-vibration rubber components, and the company is responding with an $18.8 million investment on the continent.
The multi-billion dollar Japanese manufacturer will expand its 129,167-sq.-ft. plant in central Mexico by another 107,640 square feet, increasing capacity by about 1.5 times its current annual production, Yu Hinatani, public relations and investor relations spokesperson at Sumitomo Riko, told Rubber News.
The expansion is "mostly for manufacturing, partly for warehousing," Hinatani said.
"Against the backdrop of strong demand for pickup trucks in North America, we have received new orders for anti-vibration rubber for automobiles," he said.
The Mexican factory, known as the O'Donnell Plant, employs about 780 and will look to start mass production of the anti-vibration rubber components at the end of this year in the "legacy" area of the plant.