Tire Factory in Paraná to Receive Billion-Dollar Investment to Boost Production Capacity; 300 New Jobs May Be Created

The Sumitomo Rubber Factory in Paraná Will Receive a New Investment of R$ 1.06 Billion. With This, More Than 300 People Should Be Hired

Sumitomo Rubber, owner of the Dunlop tire brand, announced yesterday, Tuesday (07/27) that it will invest around R$ 1 billion to expand its factory in the state of Paraná, which will have its capacity for truck tires doubled by 2025, in addition to increasing production of tires for passenger vehicles. With this, more than 300 people are expected to join the current workforce of 1,600 employees at the plant located in Fazenda Rio Grande, in the metropolitan region of the capital of Paraná, Curitiba. Also see: New Factory That Received Investments of R$ 152 Million Is Inaugurated in Paraná. The Project Can Generate More Than 160 Jobs

• Enel SP Invests R$ 10.6 Million and Begins Work to Expand the Energy Supply Capacity of the Sumaré Substation, Generating Jobs and Income for Local Residents
• General Motors Suspends Production at Its SP Factory for Another Month, Affecting the Manufacturing of the Tracker, Onix Joy, Onix Joy Plus, and Spin Models
• Horizonte Minerals, a World Leader in Nickel Investment, Is Finalizing Preparations to Start Construction of the Araguaia Ferronickel Project in Pará
• On Top of the Gasoline, Diesel, Ethanol, and Cooking Gas Prices Being Sky High, Brazilian Households Also Have to Deal With Rising Electricity Bills, Caused by the Worst Water Crisis in Recent Times
• Canadian Solar Secures Financing of R$ 500 Million to Invest in the Construction of New Solar Energy Projects in Brazil

Expansion of Production Capacity at the Factory in Paraná

Yoshinori Wakitani, President of Sumitomo Rubber do Brasil, says they have great faith in the potential of the Brazilian market and hope that with the new investment in the factory they can further solidify their brands with Brazilian consumers, offering products that are references in safety and technology.

The factory located in Fazenda Rio Grande, Paraná, operates at full capacity, in three shifts, 24 hours a day, seven days a week, producing 18,000 units per day for automobiles, a volume that is expected to rise to 23,000 per day with investments by 2024. In the case of truck tires, production currently reaches 1,000 per day, and the forecast is to more than double the volume to 2,200 per day by 2025.

Rodrigo Alonso, Sales and Marketing Director at Dunlop, says that the investments will not only be aimed at increasing production; they will also invest in technology, especially in compounds that reduce rolling resistance to lower fuel consumption, as that also affects all processes at the factory.

Significant Growth and Market Demand

Alonso says that so far, they have managed to maintain high production levels despite the challenges brought about by the pandemic. There are no surplus raw materials in the world today, but they have not faced shortages for production. However, it has become more expensive. Since Brazil does not have sufficient production and natural rubber, we need to import and deal with some shipping delays, says the company’s Sales Director.

Currently, Brazilian vehicles from Volkswagen, Toyota, and Fiat leave the factory equipped with Dunlop or Falken tires (a brand focused on off-road), as well as heavy models from Volkswagen Caminhões e Ônibus (VWCO), Iveco, and Marcopolo. According to the director, exports from Brazil have marginal volumes, with few replacement units being shipped to neighboring Argentina, Uruguay, and Colombia. “The priority of our investments in the factories at the moment is to serve the Brazilian market,” informs Alonso, adding that the expansion processes and hiring involved in the R$ 1 billion program should begin gradually in 2022.

Also Read: New Tire Factory to Be Built in the State of Rio Grande do Sul. Location Will Receive Investments of R$ 20 Million and Can Generate More Than 250 Jobs

The City Hall of Nova Santa Rita, in the state of Rio Grande do Sul, recently issued the Environmental License for the company Zé Pneus. The company is coming to the city and will build a new factory with investments of R$ 20 million and is expected to generate more than 250 jobs in the area.

According to entrepreneur José Alberto Borges, the arrival of the factory in the municipality of Rio Grande do Sul represents a new phase for the company. Now, it is including agribusiness products in its portfolio. “We have built a trajectory focused on retail. Now we are entering a heavy area, that of agribusiness,” he comments.