Sumitomo Rubber to Build Chinese PCR Tyre Factory

Sumitomo Rubber Industries Ltd has announced plans to build a new factory in China. Construction is set to begin in September 2010, with a total investment of US$297 million (267 billion yen) earmarked for the project. Production is planned to begin in July 2012 with output rising to 15,000 tyres a day (after 139 billion yen capital investment) at the end of 2014. The second phase will see the company spend another 96 billion yen of capital investment and output increasing to 30,000 tyres a day at the end of 2017.

The new plant will be built in Hunan Province and is Sumitomo’s second in China. Sumitomo opened its first tyre production facility in China in 2004, in Changshu City, Jiangsu Province, making passenger, light and heavy truck tyres. That plant’s capacity is nearly 6,000 tonnes per month. According to the company, Sumitomo Rubber’s decision to establish the new plant is driven China’s surging car production, which is itself driven by rapid expansion of domestic demand.

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