Sumitomo Rubber Industries announced plans for new production facilities at their Brazil plant where they will begin production of tires for trucks and busses on the Brazilian market starting in March 2019.
The companyâ€™s Brazilain plant began producing tires for passenger vehicles and lightweight trucks in October 2013, and by the end of 2015 were at production capacity of 15,000 tires for Nissan vehicles. Presently, though tires for trucks and busses are being imported, as the truck and bus tire market is projected to see a growth of around 2%, along with plans to help stabilize supply in the region and while looking to avoid risks associated with conversion rates, the company is working to strengthen their presence in the Brazilian tire market even moreso than with their established passenger vehicle and lightweight truck tires.
In order to facilitate commencement of truck and bus tire production, the company is planning to accrue an overhead investment of R$312 Million ($95 Million USD) over the course of 4 years. The company is also planning an investment of R$175 Million ($54 Million USD) to further increase the companyâ€™s passenger vehicle and light truck tire production rates.
[Translated by Bryce Clarke]