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Sumitomo Purchased Land for Brownfield Expansion in USA

The renowned Japanese tire manufacturer bought land in United States for brownfield expansion of its plant

United States: In process of brownfield expansion, Sumitomo Rubber USA, LLC recently purchased a land area of 6.4 acres near to its tire manufacturing facility located in Tonawanda, Erie County, New York.

As per the official authorities, almost 30 years ago, the land was being used by a chemical company that got devastated due to fire.

Moreover, during October 2015, Sumitomo took full control of the facility from Goodyear Dunlop Tires North America plant. Besides that, the company has also unveiled its plan to capitalize USD87 million in the entire process. Sumitomo called a bid for this land in December last year.

TechSci Research depicts that Sumitomo is among the popular tire brands in the United States. The investment made by Sumitomo for brownfield expansion is anticipated to lead to an enhanced production of tires by the company in coming years. Eventually, Sumitomo would further be able to meet the confounding demand for tires emerging from the country, which would assist the company to proliferate its sales in coming years in the United Sates market.

According to a recent report published by TechSci Research, “United States Tire Market Forecast & Opportunities, 2021”, demand for tires in the United States is forecast to grow at a CAGR of over 5%, in volume terms, during 2016-2021. The vehicle fleet of the country is dominated by passenger car segment, followed by light commercial vehicles, medium and heavy commercial vehicles, off-the-Road (OTR) vehicles and two-wheeler segment. As a result, the passenger car tire segment held the largest volume share in the country’s tire market in 2015, and its dominance is anticipated to continue during the forecast period as well. Leading global tire companies operating in the United States include Bridgestone, Goodyear, Michelin, Cooper, Continental, Sumitomo, Hankook, Yokohama, etc. The report also portrays huge potential of tire market in Southeast and Midwest regions of the country. The vast demand for tires from these regions can mainly be imputed to the large automobile fleet size, high population density coupled with the rapid urbanization in the area.

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