Sumitomo Rubber Industries Ltd. (SRI) plans to expand its TBR capacity in South Africa

South Africa: In order to meet the rising demand for radial truck and bus tires in African markets, Sumitomo Rubber Industries Ltd. (SRI) is planning to enhance its capacity for truck and bus radial tires at its plant in Ladysmith. Sumitomo acquired this plant from Apollo Tyres Ltd. in 2013 and is investing USD55 million for the installation of production equipment for TBR tires, in order to expand its production capacity by mid-2018.

The company earlier made an investment of USD100 million in 2014 to expand its overall capacity to 12,200 tires per day by 2016 and further to 14,500 tires per day by 2017. Also, this investment aims at upgrading its capacity for high-performance tires in the country.

These investments will allow Sumitomo Rubber Industries Ltd. (SRI) to strengthen its hold in the tire business in the African continent and would further accelerate the pace of the group's global growth and development.

According to a recent report published by TechSci Research, “South Africa Tyre Market Forecast and Opportunities, 2020” Commercial vehicle tire segment is a prominent tire segment in South Africa tire market. Government’s on-going National Development Plan and its continued commitment to public infrastructure investment of around USD68.41billion (R847billion) during 2013-2016, will result in large scale construction and increase in transportation of goods, employing more commercial vehicles. These developments are anticipated to propel the demand for commercial vehicle tires in the country during the forecast period.

As per TechSci Research report, South Africa tire market is forecast to increase at a significant rate in coming five years. The recent investments made by SRI would help in expanding its share in South Africa’s tire market as well as in other African nations.