Bridgestone has unveiled its plan to build a new US$497 million plant for production of radial tires for passenger cars in Dinh Vu Industrial Zone (IZ) in the northern city of Hai Phong.
The plant is expected to be operational in the first half of 2014 and reach full production capacity of around 24,700 tyres per day in 2016. The company expects to employ 1,900 staff.
Covering an area of 1.02 million sq. metres, the plant would serve as an export base for replacement tyres sold in the European, North American, and Japanese markets, primarily supplying passenger car radials for general use.
Bridgestone has increased capacity at the Nong Khae Plant in Thailand and the Karawang Plant in Indonesia to supply those markets. It believed that a new plant in Viet Nam was necessary to meet the continuing growth in demand.
The Bridgestone Group currently produces new tyres at 47 plants in 20 countries. After the start-up of a new plant in India, a plant for large and ultralarge off-the-road radial tyres for construction and mining vehicles in the United States, and this new plant in Viet Nam, Bridgestone will have a production system of 50 plants in 21 countries.
Secretary of the city’s Party Committee Nguyen Van Thanh said the project would contribute to the city’s socio-economic development.
He added that the city would provide favourable conditions including electricity, water and security for the project to start in May.
In selecting the site, Bridgestone made a comprehensive evaluation from a variety of perspectives, including infrastructure, location, workforce and cost. As a result of this evaluation, the IZ was chosen as the site for the new plant.
This will be the fifth Japanese invested project in the IZ following Nakashima, RK Engineering, Toyota Tsusho&Formosa Union Chemical and Shin-Etsu.
Dinh Vu IZ has the advantages of a strategic transport system, a deepwater port and services for industries with preferential tax policies.
The IZ has attracted 40 investors with total investment of around $1.5 million.