Aug 3 2005
Bridgestone Corporation announced today that Bridgestone will build a plant in Huizhou, in China's Guangdong Province, to produce steel cord for truck and bus radial tires. The decision to build the steel cord plant is the company's latest measure to serve the surging demand for tires in China.
On July 14, Bridgestone established the wholly owned subsidiary Bridgestone (Huizhou) Steel Cord Co., Ltd. to operate the plant. That followed approval for the project after a period of negotiation with Huizhou City officials. Bridgestone has earmarked approximately $100 million for investment in the new plant.
Management at Bridgestone plans for the new plant to begin operation in January 2007 and for its daily production capacity to reach 70 tons by the end of 2008. The steel cord plant will supply its output mainly to Bridgestone's truck and bus tire plant in China.
Bridgestone (Huizhou) Steel Cord's plant will be the Bridgestone Group's seventh steel cord plant worldwide and its second in China. It joins the Kuroiso and Saga Plants in Japan, the Clarksville Plant in the United States, the Cagliari Plant in Italy, the Rayong Plant in Thailand and the Shenyang Plant in China.
Expanding in-house production capacity in raw materials for tires and for diversified products is a strategic priority in the Bridgestone Group. For example, Bridgestone Group companies produce synthetic rubber in the United States and carbon black in Japan and Thailand. Bridgestone Group companies operate rubber plantations in Indonesia and in Liberia.
Capabilities in producing raw materials strengthen the Bridgestone Group's foundation for technological development. Those capabilities also help ensure reliable supplies of consistently high-quality raw materials for Bridgestone Group tire plants worldwide. Management at Bridgestone therefore regards independent production capabilities in raw materials as a core strategic strength for the Bridgestone Group.
http://www.bridgestone.co.jp