Bridgestone Corporation on Tuesday said it would build a new tyre plant in India near Pune, Maharashtra state, at a cost of about JPY50bn (US$540.4m).
“This new plant will begin passenger car radial tyre (PSR) production and truck and bus radial tyre (TBR) production in response to increasing demand for these tyres in India, which is seeing marked economic growth,” Japan’s largest tyremaker said in a statement.
PSR production is scheduled to begin in January 2013 and TBR production is scheduled to begin the following August. By the end of 2020, production capacity is expected to reach approximately 10,000 units per day for PSR and 3,000 units per day for TBR.
Tyre demand in India is expected to grow significantly as automotive production and unit sales increase in step with the expansion of road infrastructure that is the result of economic growth, Bridgestone said. It began PSR production at its Indore plant in 1998 and plans to commence TBR production at that plant in 2011.
“However, the group has now determined that the establishment of a new plant is necessary in order to further strengthen its supply system in India,” Bridgestone said. The new plant would have “excellent” access to major cities, as it is 170 km southeast of Mumbai.
“Deliveries to our customers will be enhanced and made easier,” the tyremaker added.