Sumitomo is investing around US$55m in its South African plant for truck and bus tyres.
“In recent years, demand for tyres in African markets has been steadily increasing in tandem with rapid economic growth – and we anticipate even further growth in the near future,” said a Sumitomo statement.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
“Until now, our South Africa factory has produced tyres solely for passenger cars and light trucks. In 2014, we announced a US$66m investment plan with the aim of enhancing the factory’s production capacity and product quality, especially with regard to high-performance tyres.
“Now, we are preparing to make an additional ZAR910m investment in the installation of production equipment for truck and bus tyres.
“At present, Sumitomo Rubber South Africa supplies truck and bus tyres to African markets through sales of imported tyres. Now, we will gain production facilities for truck and bus tyres on the continent, thus enabling us to ensure a steady supply of locally produced tyres for local markets.”
Following the upgrading, Sumitomo adds it plans to start producing truck and bus tyres in South Africa from July, 2018.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData
