News from Notch Consulting, Inc.

February 16, 2021

Sumitomo expanding tire capacity in NY, Thailand, and Japan

Filed under: Carbon Black, General, Rubber, Rubber Chemicals, Silica, Tires — Notch @ 11:11 pm

Sumitomo Rubber Industries Ltd. (Kobe, Japan) plans to invest $122 million over three years to increase capacity for passenger car, light truck, and medium truck tires at its factory in Tonawanda, New York. Sumitomo is budgeting $96 million to raise capacity for car and light truck tires from 6,500 units/day to 12,000 units/day by year-end 2023, as well as another $26 million to raise truck tire capacity from 1,750 units/day to 2,300 units/day by year-end 2024.

In a press release announcing the project, Sumitomo said the¬†expansions were driven by strong demand in North America for its light truck, SUV, and medium truck tires. In particular, sales of the company’s Falken-brand high-performance tires continued to expand steadily in 2020 despite the impact of COVID-19.

In Asia, Sumitomo is expanding capacity for light truck and SUV tires at plants in Amati, Thailand, and Miyazaki, Japan. With the expansions, Sumitomo will have capacity to produce 4,150 units/day at the plant in Thailand by year-end 2023 and 1,600 units/day at the plant in Japan by year end 2024. These expansions will primarily be used to supply the North American market.

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