SRI adding TBR to S. African plant

LADYSMITH, South Africa (April 15, 2016) — Sumitomo Rubber Industries Ltd. is committing $62 million over two years to install capacity for radial truck and bus tires at its Ladysmith plant to meet growing demand in Africa for these products.

This project, scheduled for completion by July 2018, is on top of $100 million SRI is investing through 2017 to expand overall capacity and upgrade capacity for high-performance tires at the South African plant. That project is designed to boost capacity to 14,500 units daily from roughly 9,600 in 2014.

SRI did not say how much truck tire capacity it's installing at the 43-year-old plant it acquired in late 2013 from India's Apollo Tyres Ltd. nor how many jobs might be created.

Sumitomo Rubber South Africa (Pty.) Ltd. supplies truck and bus tires to African markets through imports of tires from other SRI factories.

Adding capacity at Ladysmith will help “ensure a steady supply of locally produced tires for local markets,” SRI said, strengthening its business in Africa and accelerating the pace of the company's global growth and development.

SRI said demand for tires in African markets “has been steadily increasing in tandem with rapid economic growth,” but the company did not provide specifics.