Sumitomo rubber to open 7 plants by 2020

sumitomo industriesSUMITOMO Rubber Industries has announced that it will boost its tyre production in developing countries as part of its long-term plans.

Seven plants will be built across Turkey, Russia and developing nations in Africa, giving the company a total of 18 plants worldwide and seven more sales sites will be added. Outlays are estimated at 50-70 billion yen annually.

By 2020, Sumitomo expects 37% of its tyre sales to come from emerging countries, a 16-point increase from 2011; and targeting sales of about 1.2 trillion yen. up by 68% from this year’s estimates. Moreover, it intends to increase its sales ratio by 6 points to 17% in China.

The tyre maker also seeks to more than double operating profit to 150 billion yen and widen its operating margin to more than 12% from a projected 9% this year. Although natural-rubber prices are expected to climb due to higher tyre demand, the company will work to introduce value-added products such as fuel-saving tyres and tyres made from materials not derived from petroleum.