On November 25, Japanese tire manufacturer Bridgestone Corp. has announced a Yen27 billion investment plan to expand production capacity at its Hikone, Tosu, and Tochigi tire manufacturing facilities in Japan.
The initiative focuses on high rim diameter (HRD) tires for premium passenger cars, targeting demand for tires with the rim size of 20 inches and larger (ultra HRD).
The expansion, part of Bridgestone's 2024-2026 mid-term business plan, is scheduled to begin in early 2025 and finish by the end of 2028. Once complete, production capacity across the three plants will increase by 3,000 tires per day.
The plan aims to strengthen and expand Bridgestone's global production of ultra HRD for passenger cars and position Japanese manufacturing as the core of global business. Bridgestone said that by strengthening its R&D and manufacturing capabilities in Japan, it aims to further enhance its profitability and global competitiveness.
Bridgestone said it aims to bolster its premium tire business with technologies such as Enliten, which are designed to improve tires' environmental and performance characteristics.
The group will also adopt a modular production process BCMA at these plants to reduce costs and streamline production. Benefits Bridgestone said it expects BCMA to yield include: Reduced changeover man-hours through module sharing; more streamlined production planning and product development; and much lower conversion costs.
During the 2024-2026 mid-term business plan, the group aims to switch 50% of its global passenger tire production to BCMA, according to Bridgestone's 2024 Integrated Report.
It is understood that the Hikone plant has been in operation since 1968 and currently has a daily production capacity of 55,600 passenger car tires; the Tosu plant has been in operation since 1970 and can produce 18,800 passenger car tires per day; the Tochigi plant produces 12,300 tires per day, covering a wider product range including truck and bus tires.
According to Bridgestone's third-quarter report, the group's domestic sales revenue in Japan was 291.1 billion yen in the third quarter, a year-on-year increase of 1.3%; adjusted operating profit was 41.5 billion yen, a year-on-year decrease of 20%, and operating profit margin was 14.3%.
In the first three quarters, sales in the Japanese market totaled 1,255 billion yen, with adjusted operating profit of 190 billion yen and operating profit margin remaining at a high level of 15.1%.
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