Following a three-year factory expansion project worth USD$133 million, Sumitomo Rubber Industries (SRI) has started production of commercial truck and bus tyres in Fazenda, Brazil; the installation of new production equipment will augment the production capacity from 500 to 1,000 truck/bus tyres daily by the end of 2020, in light of the growing demand in Brazil. Manufacturing operations began in March 2019.
The Japanese tyre maker previously imported truck/bus tyres for sale in the Brazilian market, but the improved local production from Parana state, southwest Sao Paulo, will steady tyre supplies – the demand for such tyres is expected to grow by 2-3% per year – and minimise FOREX risks for the company due to currency rate fluctuations. The Fazenda Rio Grande plant was established in 2013 over 5.38 million sqft, and further 144,000 sqft expansion to add capacity for truck tyres.