Sumitomo to invest $100mln in South African plant
Sumitomo Rubber Industries (SRI) will pour $100 million investment to increase production capacity at its South African plant for long-term potential growth in the region.
The Japanese tyre marker will increase daily production to 12,200 tyres in 2016 and eventually to 14,500 tyre in 2017 from the current 9,600 tyres a day. It will also produce tyres for sport utility vehicles.
The company officially opened the new head office of Sumitomo Rubber South Africa last week and announced its plans for the investment. The factory to be expanded is in the south eastern province of KwaZulu-Natal. Sumitomo Rubber bought the factory from Indian peer Apollo Tyres in December 2013, and the 310,000-sq.-meter site has room for more facilities.
Seeking to enhance its production and sales capabilities on the African continent, SRI completed the acquisition of Apollo Tyres South Africa in December of 2013, launching its new business in Africa under the name Sumitomo Rubber South Africa.