Dunlop will start production of tyres for heavy vehicles in Brazil in March

SAO PAULO (Reuters)-the Dunlop Tire brand in the Japanese group Sumitomo Rubber Industries, plans to start production to trucks and buses in Brazil in March this year, expanding performance that began with ride vehicles in 2013. The company, which competes with rivals such as Pirelli, reported on Monday that the production of tyres for heavy vehicles should start with 500 a day, doubling the volume in 2020. The increase in the company's activity takes place in the midst of an investment of 640 million of dollars in your factory in Parana, 76% of which have already been disbursed. The remainder, 153 million dollars should be invested to achieve the goal of 1000 tyres for trucks and buses a day, according to the company. The unit of production of tyres for heavy vehicles will start activity after sales of new trucks and buses in Brazil in 2018 rose approximately of 42%, 95600 units, according to the dealers ' Association Fenabrave. As the entity, to 2019 the expectation is that sales of this segment to rise about from 16%. In addition to start production of tires for trucks and buses, Dunlop is also projecting an increase of 20% in the production turned the vehicles until 2020, to 18000 units per day before 15000 level registered in 2018. " We believe in Brazil's economic growth for the coming years and, therefore, we decided to invest further in our factory in Fazenda Rio Grande (PR), to expand the production of tyres for cars and to begin production of tyres for trucks and bus, "said the President of Sumitomo Rubber from Brazil, Yoshinori Wakitani, in a statement to the press. According to research Focus of the Central Bank, the gross domestic Product of Brazil in 2019 is expected to grow 2,53% ante expectation of expansion in 2018 to 1,3%.