Rubber Journal Asia Corporate Profile
Bridgestone takes giant steps in Asia We are also currently moving into full-scale expansion of our Retread tyre sales in the region. In Asia, consumers tend to have the habit of using new products until they cannot be used any further, while at the same time, many countries in Asia also have the impression that Retread Tyres are “cheap and of low quality”. As compared to developed countries like the US, Europe and Australia, the reality is that Retread tyres are currently not as widely used in Asia. To tackle this, we are expanding the number of Bandag Retread production facilities in the region. We are also appealing the durability of Bridgestone’s new tyre casings, and recommending Bandag Retread to consumers when they are buying new tyres. In addition, we also make use of total tyre life data (which includes the life span of new tyres and multiple times of retreading) to prove our cost reduction competitiveness in comparison with other competitors’ products. We are also improving the quality of our family channels by introducing more Bridgestone Select stores across the region. As at the end of 2012, we have approximately 190 direct retail stores and approximately 160 family channel stores in the region, and we are planning further expansion of this in the future.
In this interview with Shinichi Sato, President, Bridgestone Asia Pacific (BSAP), PRA learns more about the company’s environmental mission, plans for new facilities and tyre products, R&D work and its handling of the lack of truck tyre sales in China. Shinichi Sato, who has had the experience of working in Europe and Thailand, and also served as Director of the Middle East, Africa, Russia, Asia, Oceania and China Operations Division in the headquarters in Japan since 1979, says, “I feel that the business environment has become more dynamic. It has changed for the better and living environment of the people has also improved. With the growth in motorisation, the demand for tyres in this region has been especially strong. Asia Pacific is also the fastest growing as compared to other regions across the globe. Considering the rise in manufacturers from emerging countries, it is expected that the business environment will become more competitive. As we continue to carry out our business with Bridgestone’s many years of technological development capabilities and our strong ability to respond in terms of supply, we aim to establish ourselves as an undisputed No. 1 position both in name and reality as a market that supports the Group’s strategy for growth”
PRA: What is Bridgestone’s current capacity and output? Sato: We do not disclose the production capacity but the total production volume that we estimate for 2013 is approximately 1.9 million tonnes. Currently, we operate eight tyre factories in the region. The newest factory, which has just started operations in Pune, India this year, began producing passenger car radial tyres (PSR) in January, and will begin producing truck and bus radial tyres (TBR) in October 2013. We will also set up a new PSR tyre plant in Hai Phong City, Vietnam. It will begin in March 2014, and by the first half of 2016, the plant will be completed with a production capacity of around 24,700 tyres/day. While the new plant will serve as an export base for replacement tyres sold in Europe, North America, and Japan, we will continue to monitor demand trends and review our plans where necessary. A new plant will also be established in Amata City Industrial Estate, Rayong, Thailand, for the production of off-the-road radial tyres for construction and mining vehicles (ORRs). Production will begin in the first half of 2015 and capacity is expected to reach approximately 85 tonnes/day by the first half of 2019, when scheduled capacity increases are completed. The existing plant in Nong Khae, Thailand, will increase in daily production capacity of passenger car radial tyres (PSR) and light truck radial tyres (LTR) by 13,500 units to 50,000 units by the end of 2014. In July 2013, we will also be establishing the first technical centre in the Asia Pacific region. It will be located in Thailand, which we deem to be a strategic location considering that we have production facilities located in the country as well as a proving ground.
PRA: Explain Bridgestone’s environmental mission. Sato: Bridgestone first established its Environmental Mission Statement in 2009 and in May 2011, this statement was further refined, clarifying the long-term direction in three areas: to exist in harmony with nature, to value natural resources and to reduce CO2 emissions. In 2012, Bridgestone set its long-term vision targeting 2050 for these three areas of activities. Particularly in the Asia Pacific region, to value natural resources, we are promoting the sale of Retread tyres (this involves removing used tyre treads and applying freshly vulcanised new treads). We are also working on expanding our Solution Business, a combination of Retread tyres with new tyre sales and maintenance service as a package in the region. At the same time, in our efforts to reduce CO2 emissions, we are also expanding our sales of ECOPIA tyres (eco-tyres with improved rolling resistance) in the region. By developing eco-products like the ECOPIA and Run-Flat technology tyres (a class of tyres that can hold its shape and support the weight of a vehicle, and continue being driven on at a given speed for a certain distance even when it is punctured), we are strengthening our strategy to differentiate ourselves. 8 M AY 2 0 1 3
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