Sumitomo Rubber to Establish Subsidiary in Brazil
Sumitomo Rubber has recently decided to establish a subsidiary in Brazil.
1. Purpose of Establishment
The auto industry in Brazil and other countries in Central and South America is rapidly expanding under the steadily growing economies of the area. The demand for automotive tires is becoming strong as well. Although Brazil is the largest tire market in the area, the high customs duty and transportation costs are disadvantages to foreign tire manufactures. Sumitomo Rubber considers that establishment of a production base in the country is necessary and has decided to establish its first tire producing and selling subsidiary in the Brazil.
2. Profile of Subsidiary (planned)
|(1) Name of Company||Sumitomo Rubber do Brasil Ltda.|
|(3) Location ||Fazenda Rio Grande City, Parana State|
|(4) Establishment ||July 2011|
|(5) Business||Production and sale of radial passenger tires|
|(6) Total Investment||Approx. 560 million real (Approx.28 billion yen)|
|(7) Share Capital ||Approx.80 million real (Approx. 4 billion yen)|
|(8) Shareholding||Sumitomo Rubber: 100%|
|(9) Start of Operation||October 2013|
|(10) Production Capacity ||15,000 tires/day|
|(11) Site Area ||500,000㎡|
| || *Conversion: 1 real＝50 yen|