Tokyo (April 12, 2013) – Bridgestone Corporation today announced plans to build a Passenger Car Tire Plant in the Zavolzhye Industrial Zone in Ulyanovsk Oblast, Russia. On April 12, 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 Y37.5 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 Y1 .8 billion (RUB 600,592,730).
Moving forward, the Bridgestone Group will continue building a global production system that quickly responds to changes in market demand, while providing high quality products and services to its customers.
*CIS: Commonwealth of Independent States. An organization of states formed by former Soviet Republics following the breakup of the Soviet Union.
< Overview of New Manufacturing Company: BMCIS>
- Company name: Bridgestone Tire Manufacturing C.I.S. LLC
- Location: Zavolzhye Industrial Zone in Ulyanovsk Oblast
(about 900 km east-southeast of Moscow)
- Site area: Approximately 81 hectares
- Products: Passenger car radial tires
- Establishment: First half of 2013 (planned)
- Start of operation: First half of 2016 (planned)
Ownership: Bridgestone Corporation – 90%
- Mitsubishi Corporation – 10%
- Number of employees: Approximately 800 employees (planned for second half of 2018)
- Production capacity: Approximately 12,000 tires/day (planned for second half of 2018)
< Overview of Sales Company: BSCIS >
- Company name: Bridgestone C.I.S. LLC
- Location: Moscow City
- Establishment: 1998
- Ownership (after the investment by Mitsubishi Corporation): Bridgestone Corporation - 80% Mitsubishi Corporation - 20%
- Representative: Yoshiaki Hiraishi