Pirelli expanding in Brazil, Russia
MILAN, Italy-Pirelli S.p.A. is expanding its tire activities on two fronts, signing a $10 million technical support agreement in Russia and proposing a $136.6 million expansion of a Brazilian plant.
In Russia, Pirelli will provide technical support for a $60 million expansion by JSG Nizhnekamskshina, Russia's biggest tire maker, and plans to open a commercial company in Moscow.
Nizhnekamskshina intends to increase radial car tire capacity at its Nizhnekamsk factory in Tatarstan by 2 million units annually.
In Brazil, Pirelli Pneus S.A. has drafted a $136.6 million plan to add radial capacity to its 25-year-old Feira de Santana plant.
The plant has a capacity of 1,200 units a day of bias-ply car, light truck and medium truck tires. The European Investment Bank, the financing institution of the European Union, is evaluating a proposal to fund up to $39 million toward the project.
Sumitomo adds 2nd Indonesian plant
KOBE, Japan-Sumitomo Rubber Industries Ltd. has completed work on a second tire plant in Indonesia and is laying the foundation for tire production in China.
Sumitomo's second production site in Indonesia raises output in that country by 30 percent to 2,350 metric tons of rubber consumption per month. By the end of the 2005, capacity is expected to rise an additional 28 percent, to 3,000 tons a month, Sumitomo said.
In China, Sumitomo has begun production of Dunlop-brand motorcycle tires at a Hwa Fong Rubber Ind. Co. Ltd. plant in Shanghai. Taiwan's Hwa Fong is a Sumitomo affiliate.
That plant is scheduled to begin passenger tire production in 2004.