After the Goodyear breakup: Sumitomo Rubber to lift Thai tire output capacity

After the Goodyear breakup: Sumitomo Rubber to lift Thai tire output capacity

BANGKOK — Sumitomo Rubber Industries will boost auto tire production capacity at a key site in Thailand by 9% on strong exports to the U.S. and anticipated sales growth in Southeast Asia.

     The Japanese maker of Dunlop tires will raise capacity at a Rayong Province location where it began production at two factories in 2006 and 2007. Capacity there came to 78,000 tires a day at the end of last year, and the facilities have continued to operate at around full clip. Daily capacity will climb to 85,000 by the end of the year and could even reach 100,000 in a few years, depending on how demand develops.

     Sumitomo Rubber ended capital and business ties with U.S. rival Goodyear Tire & Rubber in June, giving it more freedom to develop the American and European markets. The Thai site is one of the largest tire production locations in the world, and the Japanese company will use it to supply overseas markets.

     Easy access to natural rubber makes the site cost-competitive compared with those in other countries. The site manufactures a wide array of products, from commodity-grade tires to high-value-added offerings, and accounts for about 20% of Sumitomo Rubber’s global capacity. About 80% of the output is exported, and sales of its Falken brand in the U.S. are growing.

After the Goodyear breakup: Sumitomo Rubber to lift Thai tire output capacity