Bridgestone has announced that it build its third factory in Mexico at a cost of $220 million (£117 million). According to Bridgestone, the factory will be the company’s first automated plant overseas from “initial processing of materials to final inspection of the finished tyres.” The plant will feature Bridgestone’s first installation of its BIRD (Bridgestone Innovative and Rational Development) system.
As the UK tyre business was observing events at the Autosport/Aftermarket show, on the other side of the globe, the Tokyo Auto Salon was attracting some 300,000 spectators. Approximately 30,000 of these passed by the Hankook stand each day. According to Hankook, every Japanese car, wheel and tyre manufacturer was present.
Demonstrating its new corporate identity, the Korean company adopted the Hankook Emotion theme for its stand. The exhibition displayed 20 items including its range of Formula 3 racing tyres, Ventus UHP tyres, the low-noise XQ-Optimo and a number of concept products. The company also tried to charm its visitors with a racing Porsche on the company stand, with a magician providing further entertainment.
“The Hankook Tire booth was a fine chance to promote our new corporate identity program in Japan, one of the world’s most important markets for modified automobiles. We worked hard to make a venue that would give auto buffs from around the world a look at our world-class technology and tyres of the future,” commented a Hankook representative.
Tokai Carbon and Mitsubishi Chemical Corp have agreed to revoke their agreement to form an Alliance of carbon black businesses. The companies will also withdraw their application for examination by the Fair Trade Commission. The commission had suggested that “the alliance might substantially restrict competition in the Japanese domestic market that is presently short-supplied.”
“We anticipate harsher competition in the carbon black industry in Asia including Japan where aggressive capacity expansions are being made in expectation of rapid growth in the automobile industry, the main consumer of carbon black … We will expand and reinforce our business bases mainly in rapidly growing Thailand and China, as well as accelerate development into high added-value products and new market areas under the basic policy of ‘Powerful R&D,’” the company said in a statement. The stated that it would remain open to the possibility of future alliances.
Having established its new European offices on 1 January, Toyo Tire invited guests to an official opening that fused European and Asiatic cultures. Dignitaries present included Toyo president and chief executive, Yoshio Kataoka and the Herbert Napp, the Mayor of Neuss, the German city where the new offices are based.
With just weeks to go until the beginning of this year’s F1 season Bridgestone has announced a pan-European search for talented young journalists.
The official tyre partner to Ferrari, Jordan Grand Prix and Minardi F1 has pledged to “nurture the next generation of motorsport talent,” and so Bridgestone e-reporter is offering a chance of a lifetime to students hoping to pursue a career in journalism.
An independent jury will select seven finalists to attend a European Grand Prix to report on the GP2 series, meeting the drivers behind the championship. The articles will be published on the Bridgestone Europe and GP2 websites.
The winner will then win a once in a lifetime trip to Tokyo, Japan, visiting Bridgestone’s global headquarters and reporting on a major company event.
Bridgestone will build a plant in Poland to produce rubber tracks for earthmoving equipment, the manufacturer announced today.
The plant is due to begin operating in July 2006 and will be located in the city of Zarow in the south western Polish province near Wroclaw. Production capacity is expected to reach about 26,000 tracks a year by 2007 and 12 million euros will be invested to achieve this.
After the company only recently confirmed plans to build its 48th tyre factory in Brazil, Japan’s Nihon Keizai is reporting that Bridgestone will build two more facilities. According to the newspaper the new factories will be built in China and Eastern Europe at a total cost of more than £253 million. The Chinese plant will produce bus/truck and passenger car products in China and is likely to be built in Huizhou, Guangdong province. As for Eastern Europe, a number of locations have been the subject of media speculation. Possible countries include Slovakia or Poland where Bridgestone already has a tyre factory.
Bridgestone is to donate 100 million yen (roughly £500,000) to disaster relief aid intended for victims of the recent Indian Ocean Tsunami. The money will be distributed through the Japan Red Cross which will allocate funds at its discretion. The company’s subsidiaries in Thailand, India, Indonesia and Malaysia will make separate contributions to local relief efforts.
Continental and Michelin have also donated to the cause.
Deutsche Bank analysts have cast doubt on the negative predictions published in the Japanese business press. According to the market observers, reports that Bridgestone’s recurring profit is set to fall 17 per cent year-on-year may not be as accurate as they seem. Although the article cites high raw material costs and yen appreciation, it fails to take into account tyre price increases, which started being implemented in Japan last year. The analysts explained that in the last few year Bridgestone has recorded strong earnings, defying the Nikkei’s projections. As a result the bank says it will not change its earning projections or rating, adding that if the share price dips below 2000 yen this would represent “an attractive investment opportunity.”
The Yokohama Rubber Co., Ltd., announced that it established a Yokohama Design Center (YDC) inside the head office building of the Minato-ku, Tokyo-based company. The YDC is intensively equipped with advanced information technologies, workshop functions and audiovisual equipment so that it can contribute to the improvement of passenger-tyre appearance and the reduction of product development lead-time at the company.
Tyre manufacturer Bridgestone Corp. has sold some 130,000 tyres printed with the Japan Industrial Standards (JIS) mark even though they were not authorized to do so, Japanese media reported. The Ministry of Economy, Trade and Industry (METI) only allows industrial products to sell with the JIS title after they pass inspections from government officials. After agreeing with the Nagoya-based Inoue Rubber Co. to jointly manufacture tyres in 2000, Bridgestone reportedly invested in Inoue’s subsidiary in Thailand, IRCT, which began producing Bridgestone tyres in Thailand in August 2001.
Goodyear Tire & Rubber Co has said its Belgium-based joint venture with Japan’s Sumitomo Rubber Industries has arranged financing worth up to $365.5 million (£189.52 million), the associated press is reporting.
The transaction, which will be completed in euros, will provide $219.25 million to Goodyear Dunlop Tires Europe BV, Europe’s second-largest tyre maker. That amount, which will be secured through accounts receivables, could expand before the facility’s term ends in five years. Goodyear said the transaction is expected to be completed by the end of the year, and will replace an existing $109.6 million facility. The deal is subject to customary annual renewal of back-up liquidity lines, Goodyear said.
Shares of Goodyear rose 84 cents, or 6.43 per cent, to close at $13.91 in trading on the New York Stock Exchange. The stock increased another 5 cents to $13.96 in after-hours trade.
Kayaba Industry (Japan), which, according to the company, is the biggest shock absorber manufacturer in the world, has developed its market position by building a new plant in the Czech Republic. Production is due to start in April 2006. “Kayaba Manufacturing Czech“ (KMCZ), to be based in Pardubice, will employ more than 200 employees at full capacity. According to the company’s production plans, by 2007 more than two million shock absorbers will be manufactured there each year.
In December 2003, Kayaba bought the remaining shares of Spanish shock absorber manufacturer, APA. With an annual production of more than 15 million shock absorbers, the next step is further strategic expansion in Europe. The production plant in the Czech Republic, which will be based on the most modern technological criteria, will have its own capital funds, totalling 17.5 million euros. By making this further investment Kayaba says it is developing its operational basis in Europe more clearly than it has done so far.
The recently submitted annual report 2003/2004 of Kayaba shows that the company is on course for growth. Turnover totalled $2.1 billion, which represented an increase of over 10 per cent compared with the same period last year. With an annual production total of more than 55 million units, in both in the passenger cars (for large reputable car manufacturers) and for the aftermarket business, the company reportedly holds a 23 per cent world market share.
Bridgestone Firestone Maxiprest (BDS) said it is expecting to make a loss of between 35 million rand and 45 million rand (£3-4 million) for the year ending December 2004, Business Day, Africa Reports. The news comes as the result of difficult trading conditions, further write-downs and provisions arising from the restructuring of the group’s operations, the company says. However, it also said the restructuring of its operations should set a base for improved performance in 2005.
The group also announced that Mr T Wada, the non-executive chairman of the company, will be returning to Japan during the course of December 2004 and has resigned as chairman and director of the company. Mr Y Ito, the non-executive chairman and CEO elect of Bridgestone South Africa (Pty) Ltd, has been appointed as non-executive chairman of Bridgestone Firestone Maxiprest Limited.
The Maserati Quattroporte has won the “2004 Import Car of the Year” award, from the Japan Automotive Hall of Fame Association (JAHFA). It achieved the award on its brand image, style, craftsmanship, value for money and for being the “ultimate choice for the car connoisseur.”
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