Sumitomo Rubber Industries will increase its production capacity by 9% at its tire plant in Rayong Province, Thailand. The Rayong site is one of the largest tyre production facilities in the world.
The Japanese tyre maker will raise capacity. Capacity there came to 78,000 tires a day at the end of last to 85,000 by the end of the year and could even reach 100,000 in a few years, depending on demand.
Sumitomo Rubber cut ties with rival Goodyear Tire & Rubber last June. The move gave Sumitomo more freedom to develop the American and European markets.
Easy access to natural rubber makes the site cost-competitive compared with those in other countries. The site manufactures a wide array of products, from commodity-grade tires to high-value-added offerings, and accounts for about 20% of Sumitomo Rubber’s global capacity. About 80% of the output is exported, and sales of its Falken brand in the US are growing.