Sumitomo Rubber Industries Ltd(SRI) has broken ground on its car tyre factory in Fazenda Rio Grande City, a $560 million (€250 million) project that's supposed to be on stream by the fourth quarter of 2013.

The 5.38-million-ft (500 000㎡) plant, with a projected capacity oa 15000 car tyres a day, will be built on a site in Brazil's Parana State, southwest of Sao Paulo.

SRI President and CEO lkuji Ikeda presided over the 27 Jan ceremony attended by about 120 gusts, including the governor of Parana Grande City, the Japanese consul general in Curitiba and others.

A new company, Sumitomo Rubber do Brasil Ltda, will oversee the construction and operation of the factory.

SRI said the factory will help it meet "rapidly expanding" auto industry in Central and South America.