Bridgestone announced its plans to invest 267 million euro ($346 million) to triple production at its plant in Hungary.
The company announced it will increase production of passenger car radial tyres with almost 12,000 tyres per day, to a total capacity of 18,000, during the first half of 2017. The world’s largest tire and rubber company said that this capacity expansion project will add 505 new jobs to the plant.
“The Hungarian Government welcomes the project, as it enables high-technology, environmentally friendly production in Tatabánya which will create more than 500 jobs directly and several more at suppliers indirectly,” said Hungary’s Economy Ministry.
Earlier this month Bridgestone announced it is planning to reach an operating profit margin of 10% as soon as possible, due to a new 5-year business plan setting out its strategy by 2017. Bridgestone aims at securing a 9.2% margin by the end of this year, while analysts expect rival Michelin to log an operating profit margin of 11%.
If Bridgestone manages to reach the targeted operating margin, it would be the company’s highest since 1999, when it reached a 11.4% margin. The company also plans to focus more on specialty tires, including large tires for aircraft, and build a new plant in Thailand where to manufacture off-the-road radial tires, which are used in mining and construction vehicles.