21 September 2012

Sumitomo Rubber signs Joint Venture in Turkey for production and sales of tires

21 September 2012 - Sumitomo Rubber Industries is establishing a new joint venture company in Turkey as part of the Group’s efforts to expand and develop its global tire business. The new company will serve as a strategic base for both production and sales of tires bound for the Middle East, North Africa and Russia, where it anticipates continued market growth, as well as for markets in Europe.

Sumitomo Rubber Group is expecting a significant increase in tire sales in emerging markets, such as the Middle East, North Africa, and Russia, and it believes that supplying tires from Turkey, which is nearer to these markets in addition to Europe, will enable us to reap enormous benefits in terms of lead times and transportation costs. In addition, with Japanese-owned automobile makers also expected to increase production in Turkey, it can also look forward to increased sales of both OE and replacement tires in the Turkish market.

Today, Sumitomo Rubber signed a joint venture agreement with our Turkish partner, Abdulkadir Özcan Otomotiv Lastik (AKO). The new company is to be established in October of 2012 and is scheduled to begin production by July of 2015

The new company will be located in Cankiri, Turkey and will have initial capital of US$30 million. Sumitomo Rubber will hold 80% stake in the company and its joint venture partner AKO will hold 20% stake. The main business will be production and sale of radial tires for passenger cars and tires for light trucks. The total investment in the project will be approx. US$500 million and it is expected to employ around 2000 by the end of 2019. 

Source: Sumitomo Rubber