Bridgestone, the world’s largest manufacturer of tyres and other rubber products, on Tuesday stated that it is to invest about R700-million in upgrading and expanding its Brits tyre manufacturing plant in North West province over a five-year period.
The new investment takes Bridgestone’s total investment in its South African operation — including the original purchase of Firestone South Africa by Bridgestone Japan — to R1,5-billion.
The Brits plant, which builds passenger, light commercial vehicle and truck steel-belt tyres for the local market, has already benefited from about R210-million-worth of improvements over the past two years.
A further R450-million will be spent in the next three years, according to the company.
The new investment is being funded by Bridgestone South Africa, formerly called Bridgestone Firestone South Africa.
Chairperson and CEO of Bridgestone South Africa Takashi Wada said that the new investment would be used to improve facilities in the Brits plant as well as to fund a major extension to the factory, which would accommodate a new, state-of-the-art production line for run-flat tyres. It would also create about 70 new jobs in the short term.
Wada added that the improvements would give Bridgestone increased capacity by about 26% in 2006 over 2003 and place it among only three Bridgestone plants in the world with the technology to produce run-flat tyres.
The other plants are in Japan and Poland. By 2006, another two such plants will have been built in Japan.
Work has already started at Brits on the extension, which amounts to more than 19 000 square metres and will include a new warehouse (the existing factory covers more than 35 000 square metres together with a 5 400 square metre warehouse).
Wada said building is expected to be completed in April and tyre production is scheduled to start in September, including development of the run-flat tyres.
The run-flat tyres will be produced for the local market as well as for original equipment fitment to cars produced locally for export to other countries. — I-Net Bridge