KOBE, Japan—Sumitomo Rubber Industries Ltd. (SRI) will invest more than $200 million to increase tire production capacity at its factory in Brazil, the company announced July 26.
The factory, located in Fazenda Rio Grande, Paraná, in southern Brazil, will increase its production capacity for passenger car and light truck tires to 23,000 per day by April 2024. Currently, the plant produces around 18,000 P/LT units per day.
Additionally, the factory will also increase its production capacity for medium truck and bus tires to 2,200 per day by April 2025, up from the current 1,000 per day.
The factory has manufactured tires for passenger cars and light trucks since October 2013; and tires for trucks and buses since March 2019.
"Although the Brazilian tire market contracted in 2020 due to the impact of the COVID-19 pandemic, market growth is expected to exceed pre-pandemic levels in 2021, and the tire market is projected to continue growing at a rate of 2-3 percent per year thereafter as well," the company said.
"By augmenting production capacity at our factory in Brazil, the Sumitomo Rubber Group aims to further strengthen our tire sales business in the Brazilian market while simultaneously taking a major step forward in advancing the global expansion of our overall business."