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Bridgestone postpones Thai plant production

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Bridgestone postpones Thai plant production

In another example of automotive related expansion stoppages of companies that have invested in the Southeast Asian economy, Bridgestone, the world’s biggest tiremaker has decided to delay the start of production at its new Thai factory.

According to Chief Executive Officer Masaaki Tsuya, because demand has ebbed not just in Thailand, but also worldwide, the company moved to delay the production delay of specialty tires (used for coal-mining vehicles for example) at the manufacturing facility.

“It will take some time before mining-vehicle tire demand heats up,” Tsuya said. The production would start if and “when demand comes back,” he added.

Tsuya said the tire making company has started to upgrade its production capability for construction and mining vehicle tires because they bring back higher profit. The plant was officially scheduled to begin mining-vehicle tires production in 2015, with a total output capacity of 85 tons per day by 2019.

According to company officials, the ongoing political struggle in the country has not affected the production timing, even as the country suffered from a coup d’etat, with all three current factories running normally. On the other hand, Honda for example, did cite the political unrest as a factor for delaying with six months the start of construction of the company’s third auto plant in the country.

Via Bloomberg

by Aurel Niculescu (my Google+) - Tuesday, June 17th, 2014 - filed under Industry, News. Image credit: .
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