More on Sumitomo's new plant in China
Sumitomo Rubber Industries Ltd. has been producing tires in China since 2004. However, with the announcement that a second plant will be built there (see "New Sumitomo plant will be built in China"), the company also is establishing a Chinese subsidiary.
According to President Tetsuji Mino, the subsidiary is necessary because vehicle demand and production in China is expanding rapidily -- and so is the tire market.
"This is a necessary establishment for our expectation of expansion in the future," he says.
The subsidiary officially will be established in September 2010 (the name has yet to be determined). The amount of the investment, including construction of the plant, will be 26.7 billion yen (approximately $300 million).
Sumitomo says the plant will begin producing radial passenger and light truck tires in July 2012. Production capacity initially will be 15,000 tires a day. Over time, Sumitomo plans to double that.