Sumitomo Rubber Industries, Ltd. is pleased to announce that, following the recent installation of new production equipment, our group's Brazil Factory began manufacturing tires for trucks and buses this past March 1. Having invested 465 million reals (approx. 13.5 billion Japanese yen*) in new equipment with the dual aims of ensuring a more stable supply of truck and bus tires for the Brazilian market while also minimizing our FOREX risks, our Brazil Factory currently has plans to augment its production capacity to be able to manufacture 1,000 tires for trucks and buses by the end of 2020.
*Conversion Rate: 1 Real = 29 Yen
Previously, our Brazilian subsidiary had imported truck and bus tires for sale in Brazil. However, thanks to the recent start of local production, our group is now better able to ensure a steady supply of tires for trucks and buses in Brazil, where the market for this type of tires is expected to grow by 2-3% per year for the foreseeable future. Building on this latest step, the Sumitomo Rubber Group will continue working to further strengthen our tire sales business (including sales of tires for passenger cars and light trucks) in Brazil as part of our overall efforts to grow and develop our global business.