Sept. 21 (Bloomberg) -- Japan’s Sumitomo Rubber Industries Ltd., which sells its products under the Dunlop brand, signed a deal with Petlas Lastik Sanayi ve Ticaret AS to build a tire factory in Turkey.
Sumitomo, Japan’s third-largest tiremaker, and Petlas will invest $516 million in the factory in Cankiri, north of Ankara, said Ilker Ayci, chairman of the country’s Investment Support & Promotion Agency.
“The priority of our factory in Cankiri is to supply tires for Japanese automobile firms such as Toyota and Honda and become a base for the European market,” Ikuji Ikeda, chief executive officer of Sumitomo, told reporters in Ankara.
The factory will start producing tires for cars and trucks in June 2015 and reach an annual capacity of 10 million tires by 2017, Ikeda said. “We expect a serious growth primarily in Russia and the Middle East markets,” Ikeda said.
Turkish Economy Minister Zafer Caglayan said Sumitomo will use the factory to produce tires for 56 countries. He also said that Turkey is preparing to start negotiations on a trade agreement with Japan.
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