13 April 2013

Bridgestone to build passenger car tire plant in Russia

-. Bridgestone will have 90% ownership, Mitsubishi 10% 
- Total investment in the project approx. ¥37.5 billion (RUB 12.5 billion) 
- Production scheduled to begin in the first half of 2016 

Tokyo – 12 April 2013 - Bridgestone Corporation announced plans to build a passenger car radial tire plant in the Zavolzhye Industrial Zone in Ulyanovsk Oblast, Russia. Bridgestone concluded an investment contract with co-investor Mitsubishi Corporation and with the Ulyanovsk Oblast government and Ulyanovsk Region Development Corporation. The new facility will be Bridgestone's first tire plant in the Russia/CIS region

The plant will be operated by Bridgestone Tire Manufacturing C.I.S. LLC (BMCIS), a tire manufacturing company jointly established by Bridgestone Corporation and Mitsubishi Corporation. Bridgestone Corporation will have 90% equity ownership, and Mitsubishi Corporation will have 10%. Total investment by both companies in the project will approximately ¥37.5 billion (RUB 12.5 billion), and production is scheduled to begin in the first half of 2016. Production items will be strategic products centered on winter tires for Russia/CIS market. Production capacity is estimated to reach approximately 12,000 units a day by the second half of 2018. 

The Russia/CIS region is a large market with a population of approximately 300 million. New vehicle sales in the region have shown strong growth, and demand for tires is expected to increase in the future. Bridgestone is building this new plant in order to meet this demand growth with local production. The Bridgestone Group has previously taken steps to further develop its operations in the region, such as expanding the Pole Position retail channel network. The construction of this new plant will enable the Group to be closer to the market, and supply our products to our customers in a timely manner. 

In conjunction with the establishment of the tire manufacturing company, Mitsubishi Corporation will take an equity position in Bridgestone C.I.S. LLC (BSCIS), a sales company established in Moscow by Bridgestone. As a result, Bridgestone Corporation will have 80% equity ownership, and Mitsubishi Corporation will have 20%, and BSCIS will have capital of about ¥1.8 billion (RUB 600,592,730). 

Bridgestone Corporation, headquartered in Tokyo, is the world’s largest tire and rubber company. In addition to tires for use in a wide variety of applications, it also manufactures a broad range of diversified products, which include industrial rubber and chemical products and sporting goods. Its products are sold in over 150 nations and territories around the world. 

Source: Bridgestone Corporation