Sumitomo Increasing Capacity at China Facility
Plans are reportedly underway to increase capacity at the Sumitomo Rubber (Changshu) Co. Ltd tyre facility in China by 20 per cent. Capacity at the factory, opened four years ago, has already been expanded once, and this latest round will increase daily output by some 30,000 passenger car tyres and 3,500 truck and bus tyres. About £68 million will be invested in the project.
Along with the changes in capacity, the proportion of output destined for export will be halved to 30 per cent – a tripling of China’s preferential export tax rate to 12 per cent in 2007 has cause the higher export levels to become a less attractive arrangement.