Sumitomo Rubber Industries is to begin producing truck and bus tires at its factory in Fazenda Rio Grande in Brazil, which will ensure a steady supply of these products for the Brazilian domestic market while avoiding the currency fluctuation risks inherent in import/export. The Brazilian market for these tires is expected to grow by around 2% each year for the foreseeable future.
As part of the plans, the company will invest a total of R$312m (US$95m) to install new production equipment at the facility over the next four years. The local production of truck and bus tires is scheduled to begin in March of 2019 with an initial capacity of 500 tires per day.
From 2017, the company also has plans to invest a total of R$175m (US$53m) to increase the production of passenger car and light trucks tires at its Brazil plant.