Bridgestone Firestone do Brasil will invest $US160 million in a new tyre factory in Brazil. The local unit said it won a contest with plants in other countries for the investment to build a new factory, but didn’t divulge where its rivals were.
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The new plant will be built in Camaçari, Bahia state, the same city where Ford has its new car factory and also where Continental will build two tyre plants.
The Camaçari plant will make tyres for passenger cars and light commercial vehicles and will supply both Brazil and other Latin American countries. Production will start at the end of 2006.
In a first phase, the company expects to produce 8,000 tyres per day, creating 500 jobs.
At the same time, Bridgestone Firestone do Brasil will invest more than $100 million in its Santo André plant, in São Paulo state, to modernise and enlarge tyre production capacity there.
The Bridgestone Firestone do Brasil investment follows recent similar announcements from Michelin and Continental and is a result of growing vehicle production in the country this year.
This year’s production is expected to be about 2.2 million units, a new historical record and an increase of 20.2% year on year.
A fast-growing local market and an increase in tyre exports has caused a shortage for supplying Brazilian vehicle production. On several occasions, the automakers had to ship cars to dealers without spare tyres, which were only supplied later when tyre makers caught up with demand.
As a result, Michelin in June announced investment of $98 million over the next two years to expand its truck tyre plant in Campo Grande, Rio de Janeiro state while, in October, Continental said it would spend $260 million to build a plant to produce car tyres and, later, a commercial vehicle tyre factory. Production starts at the beginning of 2007.
Pirelli is investing $38 million on a new truck and bus tyre plant in Gravataí city, in Rio Grande do Sul state, and will start production at the end of the next year.
With its brazilian factories working near to full capacity, Goodyear is expected to announce new investment in the next few months.
The tyre makers plan to make 53 million tyres in Brazil this year after supplying 49.2 million in 2003. Production plans for 2005 call for a 5% increase.
Rogério Louro
