Bridgestone gets license for tire plant in Haiphong

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SaigonTimes English - 37 month(s) ago 36 readings

Bridgestone gets license for tire plant in Haiphong

HCMC – Japanese tire maker Bridgestone Corporation on Wednesday received an investment certificate to build a passenger car tire manufacturing plant in the northern port city of Haiphong whose output will all be for export.

Bridgestone gets license for tire plant in Haiphong

By Quoc Hung - The Saigon Times Daily

Duong Anh Dien, Chairman of Hai Phong City government, hands over the investment certificate to Susumu Yazaki, general director of Bridgestone Tire Manufacturing Limited Liability Company - Photo: Vu Dung
HCMC – Japanese tire maker Bridgestone Corporation on Wednesday received an investment certificate to build a passenger car tire manufacturing plant in the northern port city of Haiphong whose output will all be for export.

Bridgestone Tire Manufacturing Vietnam Limited Liability Company, an affiliate company of Bridgestone Corporation, will develop the plant over an area of 102 hectares in Dinh Vu Industrial Zone.

The plant, costing some US$575 million, will have a daily production capacity of 24,700 units in stable production year. It will start production in the first half of 2014, turning out products for overseas markets like Japan, Europe, and the United States with the label “Made in Vietnam.”

With this new plant in Vietnam, Bridgestone will have a production system of 50 plants in 21 countries.

Dinh Vu Industrial Zone said in a statement that it had the Bridgestone subsidiary as the fifth Japanese investor, following Nakashima (propeller production), RK Engineering (steel tank production), SIC (LAS production), Shin-Etsu (rare earth magnet production).

The tire maker has selected Dinh Vu Industrial Zone because of its strategic location, its access to the port located directly in the zone, the availability of utilities, and the best tax incentives, according to the statement.

With this fresh investment project, more than US$1.5 billion of investment capital has been pledged in the zone, with Japanese investors representing some 45% of the total.

The new project in the zone also increases the occupancy rate of the second phase to around 50%.

After developing its first phase over 164 hectares, Dinh Vu Industrial Zone is currently developing and marketing its second phase of 377 hectares.

Vietnam is attracting some tire makers. South Korean-invested Kumho Tires Vina in November told the Daily that it would pour US$100 million this year to double capacity at its factory in the southern province of Binh Duong’s My Phuoc 3 Industrial Park.

The company’s Chief Executive Officer Seo Han Chang said that his company would spend the sum to double output to six million tires a year from the current three million products to supply local and global markets.

The additional investment will raise the company’s total capital in the factory to US$300 million, in line with its initial goal to invest US$500 million in Vietnam to boost output to 13 million auto tires of various types.

The company decides to boost production in Vietnam to make use of the ample rubber supply in the local market, while output at Kumho’s other factories in South Korea and China will remain unchanged, Chang said. Kumho Tires currently operates three factories in South Korea and four factories in China.

Kumho Tires Vina supplies the local market some 200,000 tires a year, and the company is seeking to boost sales on the local market by looking for more sales agents and promoting the franchising business here.

Meanwhile, Southern Rubber Industry Joint Stock Company, or Casumina, said earlier that it also was moving ahead with a project producing car tires with an annual output of 1.5 million products which will be operational late this year. Deputy general director Le Van Tri said products of the plant will be exported to the United States, Canada and Australia.

Casumina has signed a memorandum of understanding with a U.S. partner who will invest around US$30 million in the plant and will distribute one million tires in the U.S. market each year.

“The U.S. market consumes about 258 million car tires every year. This country is imposing a tariff of 35% on China-made products and 0% on Vietnamese tires,” said Tri of Casumina.

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