TONAWANDA, N.Y. (WKBW) — Sumitomo Rubber Industries, Ltd. announced Tuesday it plans to invest $122 million in its Tonawanda facility to "augment production capacity and improve overall productivity."
The company says in order to respond to increased demand driven by strong sales of its tires for SUVs and light trucks in the North American market it will invest in increasing production capacity for passenger car tires and light trucks.
A $96 million investment will increase the factory's daily maximum output in the tire categories from its current 6,500 tires per day to 12,000 tires per day by the end of 2023, according to the company.
The company says it will also respond to an increase in sales of truck and bus tires in North America with an additional investment of $26 million. The investment will increase production capacity from the current 1,750 tires per day to 2,300 tires per day by the end of 2024, according to the company.
"Our decision to invest in augmenting production capacity at our USA Factory is not only in response to strong sales, but also reflects our great confidence in the factory, which has made enormous progress in improving productivity over the past few years. By augmenting our local production base for the North American market, we aim to reduce sales lead times so that we may further expand sales in this key market," a release says.