SRI is investing in additional equipment and facilities for the production of truck and bus tires at the group’s Brazil factory, which will begin producing these types of tires in March 2019. This will enable the company to better respond to the steadily growing demand for truck and bus tires in the region.
When SRI first announced in July 2016 its initial plan to invest R$312m (approximately ¥8.4bn) to install production equipment for truck and bus tires at the facility, the plan was to begin production at a capacity of 500 tires per day from March 2019. With the additional investment of R$153m (approximately ¥4.1bn), SRI commits to increasing the factory’s truck and bus tire production capacity to 1,000 per day in October of next year.
Sumitomo Rubber Group’s Brazil plant has been manufacturing tires for passenger cars and light trucks since October 2013. Meanwhile, the group’s Brazilian subsidiary currently imports truck and bus tires for sale on the domestic market, where demand for truck and bus tires is expected to grow by 2-3% per year for the foreseeable future.
Thus the tire maker has decided to further enhance its overall tire sales business in Brazil by ensuring a steady supply of locally produced tires, while avoiding the currency fluctuation risks inherent to importing and exporting products.