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Sumitomo Rubber to double US plant capacity by end 2019

Sumitomo Rubber decided to double production capacity for passenger car and light truck tyres at its US plant in the next three years. The company said it will production capacity will be increased from the current level of 5,000 tyres per day to 10,000 per day by the end of 2019.

2016_063_01With this move, the company will enhance its ability to produce tyres locally for the North American market, focusing especially on expanding local production of SUV tyres, which are in particularly high demand in North America. “By increasing our proportion of locally produced tyres and cutting sales lead times, we aim to expand our overall tire sales in North America. Toward this end, our group is moving forward with plans to invest a total of 87 million dollars (approx. 9 billion yen*) on factory upgrades to increase production capacity and productivity,” said the company in a release.

“The dissolution of our longstanding Global Alliance with the Goodyear Tire and Rubber Company in October of 2015 has given the Sumitomo Rubber Group a much greater degree of freedom to conduct our business in North America. Thus, having considered various measures to enhance our productivity and expand sales in the region, we have decided to invest in increasing production at our factory in the United States. Our US factory currently produces tyres for passenger cars and light trucks, trucks and buses and motorcycles, and we plan to focus this latest round of investment on increasing the factory’s capacity to produce tyres for passenger cars and light trucks from its current capacity of 5,000 tyres per day to 10,000 tyres per day by the end of 2019. Thus, our group is planning to invest a total of 87 million dollars (approx. 9 billion yen) over the next four years on factory upgrades to increase production capacity, productivity and more,” said Sumitomo Rubber.

The company has already started the partial transfer of production of tyres for the North American market from our group’s Thailand Factory to our local factory in the United States. In the future, as part of the efforts to expand sales in the North American market, Sumitomo  Rubber plans to continue moving forward with expanding local production for local consumption in order to reduce sales lead times while enhancing our ability to supply high-performance SUV tyres, environmentally friendly fuel-efficient tyres and other high-value-added tyres to customers in North America.

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