Sumitomo Rubber Industries, Ltd. is pleased to announce that we have decided to make an additional investment in equipment and facilities for the production of truck and bus tires at our group's Brazil Factory, which will begin producing truck and bus tires in March 2019. The aim of this increased investment is to position our group to be better able to respond to the steadily growing demand for truck and bus tires in the Brazilian market. When we first announced (in July 2016) our initial plan to invest 312 million reals (approx. 8.4 billion yen*) to install production equipment for truck and bus tires at our Brazil Factory, we planned to start production with a capacity of 500 tires per day from March 2019. Now, with this additional investment of 153 million reals (approx. 4.1 billion yen*), we have committed to increasing the factory's truck and bus tire production capacity to 1,000 per day in October 2019.
*1 Real = 27 Yen (Conversion Rate as of September 2018)
The Sumitomo Rubber Group's Brazil Factory has been producing tires for passenger cars and light trucks since October 2013. Meanwhile, our 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, we have decided to further enhance our overall tire sales business in Brazil by ensuring a steady supply of locally produced tires (for trucks and buses in addition to passenger cars and light trucks) while avoiding the currency fluctuation risks inherent in import/export.
■July 2016 Announcement : http://www.srigroup.co.jp/english/news/2016/2016_062.html