Sumitomo Rubber Industries is to invest R$1.064bn (US$200m) to increase tire production capacity at its factory in Brazil. With this investment, the factory will increase its production capacity for passenger car and light truck tires from the current 18,000 per day to 23,000 per day by April 2024. The factory will also increase its production capacity for truck and bus tires from the current 1,000 per day to 2,200 per day by April 2025.
SRI’s Brazilian facility 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, the company says that 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% per year thereafter. By augmenting production capacity in Brazil, Sumitomo says it aims to further strengthen its tire sales business in the Brazilian market while simultaneously advancing the global expansion of its overall business.