Tyre exporter pumps up SA facility

Leonard Neil Exchange rate hastens production facilityGROWING DEMAND for truck tyres needed in West Africa and the increase in global exports of tyres from South Africa has encouraged Bridgestone Firestone to pump a further R100 million into its two South African production facilities. These are based in Brits near Pretoria and Port Elizabeth, with the former to receive the bulk share of the new investment which is scheduled to be made during the next two years. Passenger vehicle tyres for the vehicle export programmes of BMW, Daimler/Chrysler and Toyota have been increasing rapidly, says Kevin Yamamoto, chairman and managing director of Bridgestone Firestone SA. These come from the Brits operation. The company acquired the two plants in the mid-1990s with an initial investment of R650 million, and increased exports will provide the opportunity to grow the investment in this country, he said. Further investment in the Port Elizabeth plant will accelerate the mass production of light-truck radial tyres. The production increase will be fast-tracked from the initially planned date of 2004 to the end of next year due to the depreciation in the rand. ÒThe main reason for the production pull forward is the exchange rate. South Africa is a good base for export, including exports to Europe,Ó says Yamamoto. Bridgestone currently has an overall 39% market share in South Africa. It has a 29% share of the passenger market and 49% of the truck market