Sumitomo Rubber to raise Thai tyre output
Sumitomo Rubber Industries is set to raise car tyre production capacity in Thailand by 9 per cent in response to strong exports to the US and anticipated sales growth in Southeast Asia, according to a Nikkei report.
The newspaper report suggests, the Japanese firm will raise capacity at a Rayong Province location where it began production at two factories in 2006 and 2007. Capacity was said to be 78,000 tyres a day at the end of last year. Moving forward, daily capacity will climb to 85,000 by the end of the year and could even reach 100,000 in a few years the report suggests.
The Thai site is large and strategically positioned with easy access to natural rubber. According to the report, the factory is said to account for about 20 per cent of Sumitomo Rubber’s global capacity. About 80 per cent of Rayong produced tyres are exported and sales of the Falken brand are said to be growing in the US and other markets.