High demand from tyre manufacturers is in the country

Despite the continued increase in imports, manufacturers of tires are thrilled with the demand projected for the coming years in Brazil. Dunlop, the Japanese group Sumitomo Rubber Industries, is starting to drain the first units of its local production, after investing $ 750 million in building a factory in the State of Paraná. Already the Italian Pirelli expects to ensure their market share in the country with a contribution of $ 200 million by 2015.
"Agribusiness and the prospects for infrastructure works should contribute to leveraging our demand significantly in Brazil," said the Chairman of Pirelli's operations in South America, Gianfranco Sgro, during presentation in international transport (Fenatran), on Monday. The Italian brand is one of the leaders of the national tyre market, with about 25% market share, and has five plants in the country. The production capacity of the company is 370 thousand tons per year in Brazil, a number that rises to 400 thousand tons with the factories of Argentina and Venezuela.
"This is a region of extreme importance to us", says the world Director of business unit of truck tires of the company, Giovanni Pomati. According to the Italian manufacturer, South America represents 34% of world turnover of Pirelli, around $ 2 billion. More than half of this volume is from Brazil. "The Brazilian market is very evolved, due to the presence of the major automakers in the country," he says.
One of the major focuses of the Pirelli will be heavy-oriented line, the 01 Series radial tires, which will be manufactured in plants of Santo André (SP) and Gravataí (RS). Brand new technologies are, for example, by tires that have a sensor that sends data to the driver.
"We are working to see how the market accepts these new technologies," says marketing director for agriculture products and Pirelli truck in South America, Flavio Bettiol Jr.
Market research is also Dunlop's strategy for the heavy vehicles segment. The manufacturer evaluate expand its newly Fazenda Rio Grande plant (PR) for the production of truck tires. The minimum investment, according to Dunlop, would be $ 500 million.
"We've been wanted for all automakers installed in Brazil. There is a latent demand for the cargo market in the country, "says the Senior Manager of sales and marketing for Dunlop in Brazil, Renato Baroli.
The Executive points out that, for the array to approve the investment, Brazil needs to demonstrate a stability of demand. "The executives already know that we need to have factory here to supply the market of trucks," he says.
The Dunlop factory must reach full production capacity of 6 million tires per year in 2015. This volume represents about 10% of the total market in the country spare. "We already know that our installed capacity can't handle the demando Brazil" says Baroli.
Anfavea during opening of Fenatran, the President of the National Association of Automotive vehicle manufacturers (Anfavea), Luiz Moan, asked the Secretary of Economic Policy of the Ministry of finance, Márcio Holland, for which special conditions of Investment support programme (PSI) to be extended beyond 2014.
The Government announced recently that the program will be extended until next year, however, with fewer resources and greater interest. "We want the current conditions of the PSI remain not only for 2014, because it is an incentive for the production of capital goods," said Moan. He recalled that, in the accumulated 2013, the market of trucks had a 50% increase in production mainly due to special conditions of the PSI.