Bridgestone to Invest £357 million in Second Tyre Factory in India
Bridgestone Corporation has announced that its Indian subsidiary (Bridgestone India Private Ltd) is to invest 50 billion yen (£357 million; 401 million euros; US$539 million) in a second tyre production plant in the country. According to the company, the latest factory will be built near the city of Pune, Maharashtra State, 170 km southeast of Mumbai.
This new plant is slated to begin passenger car radial tyre (PCR) production and truck and bus radial tyre (TBR) in January 2013 and August 2013 respectively. The company is aiming for capacity 10,000 units per day (PCR) and 3,000 units per day (TBR) by 2020.
The investment is in a country, which Bridgestone characterises as “an emerging market with remarkable economic growth” is based on projections that tyre demand in India is expected to grow significantly as automotive production and unit sales increase in step with the expansion of road infrastructure that is the result of economic growth.
Bridgestone began PCR production at its Indore Plant in 1998 and plans to commence TBR production there in 2011. However, in an official statement dated 30 March 2010 the group outline plans to further strengthen its supply system in India. The new site in the Chakan Industrial Area, near Pune, Maharashtra State reportedly covers Approximately 770,000 square metres
Located at the Pithampur Industrial Area, near Indore, Madhya Pradesh State (610 km northeast of Mumbai, 800 km south of New Delhi), Bridgestone India Private Ltd is headed by Hiromi Tanigawa. The company was established in February 1996 and has 2,753 million rupees of capital. The wholly owned subsidiary of Bridgestone Corporation employs approximately 1,280 (as of December 31, 2009).