‘Source’ Reports Bridgestone India Expansion Plans

According to news published by leading Indian business daily Business Standard, Bridgestone India intends to invest Rs 2.63 billion (£32.3 million) expanding capacity at its facility in the central state of Madhya Pradesh. This expansion will reportedly include capacity for a new radial range. This would be the fully-owned subsidiary’s first major expansion since 1998, and Business Standard claims to have viewed documents indicating the company plans to increase existing capacity by between 4,000 and 6,500 tyres per day. 271 jobs will reportedly result from this expansion.

“The company has said that it has planned to complete the expansion by December 2008 to add another 1.5 lakh nos [150,000] of tyres for all vehicles per annum,” printed the Business Standard, reportedly quoting a government source. However the previously mentioned documents indicate a capacity increase of ten times this amount.

The tyremaker has allegedly requested tax concessions and other assistance for the project from the Madhya Pradesh government, and therefore it appears Bridgestone India’s proposal will be discussed at the next meeting of the government’s Project Implementation and Clearance Board.

Bridgestone India has not made any official comment regarding plans to increase capacity.