Bridgestone to build plants in China, Europe
Agence France-Presse
Tokyo, January 7, 2005
Japan's top tiremaker Bridgestone Corp said on Friday it would build tire plants in China and Eastern Europe on the back of growing demand for cars in the regions.
In China, Bridgestone plans to set up a factory in southern Guangdong province to supply tires to major auto makers, including Toyota Motor and Honda Motor, said Bridgestone spokesman Shinichi Kobori.
In Eastern Europe, the company is still looking for a suitable site in the Czech Republic, Hungary or other nations in the region.
"We are going to build new tire plants in China and Eastern Europe to meet strong demand for cars in these regions," Kobori said, adding the Guangdong plant would be Bridgestone's fourth tire factory in China.
The company also runs a tire plant in Poland.
The business daily Nihon Keizai Shimbun said Friday Bridgestone would invest a total of 50 billion yen (480 million dollars) for the construction of the two plants, set to begin operations as early as 2006.
The company also plans to raise annual capital spending for its domestic plants by eight percent to a record 200 billion yen over the next two to three years from 185 billion yen in 2004, the Nihon Keizai daily said.
The company spokesman declined to confirm the report.
© HT Media Ltd. 2004.