Sumitomo Rubber to Double Tiremaking Capacity in U.S.

Sumitomo Rubber Industries Ltd. says it will double its output in the U.S. to 10,000 tires per day by 2019.

The four-year, $87 million expansion project will focus on hiking capacity to make tires for SUVs at its existing factory in Tonawanda, N.Y. The facility currently produces tires for cars, light and heavy trucks, buses and motorcycles.

Sumitomo notes it has greater freedom to conduct business in North America since its 16-year marketing alliance with Goodyear Tire and Rubber Co. ended last year. Under terms of the dissolution, Sumitomo is allowed limited rights to sell original-equipment Dunlop brand tires to Japanese manufacturers in North America. It also sells its aftermarket Falken brand in the region.

Sumitomo and Goodyear had operated joint ventures in North America, Europe and Japan. Sumitomo gained full ownership of the Tonawanda plant, in which it had a 25% stake, when the partnership ended.