Wednesday, October 30, 2013
Bridgestone To Boost Capacity 30% At Chinese Tire Plant
TOKYO (Nikkei)--Bridgestone Corp. (5108) said Tuesday that it will raise production capacity at a tire factory in China's Jiangsu Province by 30% in response to growing demand from Chinese retailers.
Wholly owned subsidiary Bridgestone (Wuxi) Tire Co. will spend about 11.5 billion yen to build a new line at the Wuxi plant, lifting daily capacity there from about 17,000 at present to 22,600 by 2016. The move is aimed at strengthening output of radial tires for passenger vehicles.
Previously, the plant had expanded capacity in stages until 2011. Tire sales have increased to both automakers operating in China and volume retailers that sell tires to consumers there. Retail sales account for 60% of Bridgestone's passenger vehicle tire sales in the country.
The company has four tire factories in China, with the Wuxi plant and another in Tianjin serving as production bases for passenger vehicle tires. Bridgestone rang up Chinese sales of about 135 billion yen in fiscal 2012, roughly 4% of its consolidated sales.
Under its medium-term business plan, Bridgestone is trying to expand overseas operations, with China and other Asian countries identified as growth markets.
(The Nikkei, Oct. 30 morning edition)