Sumitomo to quadruple tyre capacity in China -- report

Tokyo -- The Nihon Kazei Shimbun is reporting that Sumitomo Rubber Industries Ltd will invest 10-15 billion yen (Euro 70m - 100 million) over the next three years to increase tyre-manufacturing in China. The newspaper did not cite sources.

The Nikkei said SRI will expand capacity at its joint venture plant in Changshu City, Jiangsu to 6000 tonnes per month by the end of 2008. The report said the company will increase capacity for car, truck and bus tyres, but according to ERJ's own listing, the factory currently makes only car and light truck tyres at the factory. ERJ lists the capacity there as 11 000 tyres per day, or about 1700 tonnes per month.

SRI has previously announced its intention to invest up to $51 million (Euro 40 million) in unspecified plants in China and Indonesia to increase production of passenger car tyres.

SRI operates the factory as a joint venture with Hwa Fong Rubber, with SRI controlling 96 percent of the equity.

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