SOUTH AFRICA: Sumitomo Rubber to install truck & bus tire production equipment at its South Africa factory

Sumitomo Rubber Industries, Ltd. said that--in order to respond to increasing demand for tires in African markets coinciding with rapid economic growth throughout the continent—it is moving forward with investments in plant and equipment at its factory at Ladysmith, KwaZulu Natal, South Africa.

These investments, focus on the installation of production equipment for truck and bus tires, will total 910 million rand (approx. USD55 million) when complete.

In recent years, demand for tires in African markets has been steadily increasing in tandem with rapid economic growth-and Sumitomo anticipates even further growth in the near future. Until now, the company’s South Africa Factory, titled “Sumitomo Rubber South Africa (Pty) Limited”, with a capacity of 10,000 tires per day, has produced tires solely for passenger cars and light trucks.

In 2014, Sumitomo announced a 1.1 billion rand (approx. USD66 million) investment plan with the aim of enhancing the factory's production capacity and product quality, especially with regard to high-performance tires. Now, it is preparing to make an additional 910 million rand investment in the installation of production equipment for truck and bus tires.

At present, Sumitomo Rubber South Africa supplies truck and bus tires to African markets through sales of imported tires. Now, it will gain production facilities for truck and bus tires on the continent, thus enabling itself to ensure a steady supply of locally produced tires for local markets.

As a result, the company will not only further strengthen its tire sales business in Africa, but also simultaneously accelerate the pace of the global growth and development of the Sumitomo Rubber Group.

Following these investments, Sumitomo plans to begin producing truck and bus tires in South Africa from July 2018.

Source: Sumitomo Rubber Industries website, Chuo-ku, Kobe, Hyogo, Japan; 24 Mar 2016
(Syed Rashid Ali, Karachi, Pakistan)