Bridgestone Sees Hot China Growth, Increasing Production

Bridgestone Corporation expects aggressive growth in China this year, regardless of how the country’s currency sits against the US dollar. Sales of cars, SUVs, buses and commercial trucks in China are expected to exceed 2008 levels by more than 10 per cent, according to Bridgestone China managing director Yujiro Kanahara.

“We don’t expect China to increase tyre imports, even if it allows the yuan’s appreciation, as the government protects the domestic market by tariffs,” Kanahara told Bloomberg in an interview in Tokyo. “A stronger Chinese currency would cut purchasing costs” for imported rubber and result in tougher price competition.

To meet growing demand in China, Bridgestone, with four tyre plants in China, said it will increase production there by 43 per cent, and boost exports of tyres from Japan to China by 16 per cent.