Sumitomo Rubber Industries, Ltd. is moving forward with investments in plant and equipment at its Group’s factory in South Africa, Sumitomo Rubber South Africa. These investments focus on the installation of production equipment for truck and bus tyres, will total 910 million rand (approx. 55 million USD) when complete.
In recent years, demand for tyres in African markets has been steadily increasing in tandem with rapid economic growth-and we anticipate even further growth in the near future. Until now, Sumitomo’s South Africa Factory has produced tyres solely for passenger cars and light trucks. In 2014, we announced a 1.1 billion rand (approx. 66 million USD) investment plan with the aim of enhancing the factory’s production capacity and product quality, especially with regard to high-performance tyres.
At present, Sumitomo Rubber South Africa supplies truck and bus tyres to African markets through sales of imported tyres. Now, the company will gain production facilities for truck and bus tyres on the continent, thus enabling us to ensure a steady supply of locally produced tyres for local markets. Following these investments, the company is planning to begin producing truck and bus tyres in South Africa from July of 2018.