QINDAO, China — Chinese tire distributor Sunset Tires Corp. Ltd. plans to invest more than $256 million to build a tire plant in Brazil.
Currently in the study phase for land acquisition, the plant, once completed, will make XBRI-brand radial passenger tires for the Brazilian market and for export to the U.S.
"The tire factory project will incorporate the most modern technology in the segment, with a focus on sustainability, including product recycling and generating its own energy from clean sources, such as the production of green hydrogen," the company said in a statement.
The company said it sold more than 3.5 million XBRI-brand tires in 2023 in Brazil.
"With the market expanding, Brazil holds great growth potential, having an average fleet of 250 cars per thousand people, which is half the rate observed in Europe and one-quarter of the figure when compared to the U.S. market," the company said.
"XBRI Tires was founded 36 years ago and has strategically positioned itself by developing products specifically designed for Brazilian climate and road conditions, but with 100% of its production abroad," Samer Nasser, the brand's director of institutional relations, said.
"Today, the production, logistics and export taxation costs from our factories in Asia are already comparable to domestic production costs, so we believe the time has come to make this investment."
XBRI Tires claims to be among the leading tire distributors in the Brazilian market, with its products approved for use by major auto makers such as Volkswagen and Stellantis, as well as by some of the largest fleets in Brazil.
"By establishing itself as the first genuinely national tire manufacturer, Xbri Tires reaffirms its commitment to Brazil's economic development and the supply of quality products at competitive prices. Our brand is ready to face challenges and continue growing, benefiting consumers and driving the economy," Nasser said.
