Sumitomo to manufacture in Brazil through 100% owned subsidiary
Official confirmation has been given of Sumitomo Rubber’s plans for Brazil; in July the Japanese firm will establish Sumitomo Rubber do Brasil Ltda, a Panara state-based subsidiary responsible for manufacturing and selling tyres in Brazil. With an investment of some 560 million real (£211 million), Sumitomo Rubber do Brasil will erect a factory to produce passenger car radials. The 500,000 square metre plant is scheduled to start production in October 2013 and have a 15,000 tyre per day capacity. Sumitomo Rubber will be sole shareholder in the new subsidiary.
Explaining its reasons for establishing the new subsidiary, Sumitomo Rubber notes that Brazil’s automotive industry, along with those in other Central and South American countries, is rapidly expanding and the demand for car tyres is growing along with this. Yet Sumitomo considers the cost of customs duties and transportation costs in Brazil, the region’s largest tyre market, places overseas manufacturers at a competitive disadvantage. “Sumitomo Rubber considers that establishment of a production base in the country is necessary,” the tyre maker stated in a press release.
Related news:
Comments