Bridgestone To Close Tyre Manufacturing Plant In Port Elizabeth, South Africa

Published On 2020-08-21 15:25:04By TyreDekho Team 467 views

Bridgestone’s Port Elizabeth plant is specifically geared towards the production of older bias tyres, which are globally in decline and being phased out in South Africa as it is an unprofitable market

Bridgestone To Close Tyre Manufacturing Plant In Port Elizabeth, South Africa

Bridgestone Southern Africa (BSAF) has announced its proposal to close its bias tyre manufacturing plant in Port Elizabeth. This move is fully in line with the recently announced mid-long term business strategy laid out by Bridgestone Corporation which plans to strengthen its core tyre business through focus on premium profitable growth segments, said the company in a release.

BSAF has in recent years seen its financial performance come under pressure due to a variety of economic conditions and industry factors. In addition, Bridgestone’s Port Elizabeth plant is specifically geared towards the production of older bias tyres, which are globally in decline and being phased out in South Africa as it is an unprofitable market. The effects of a shrinking economy and an influx of cheap imports compounded by rapid changes in the tyre industry has prompted BSAF to restructure its operations, added the tyre maker.

The company further added that the agricultural industry is shifting to radial tyres, which are longer lasting, and the production of which is modern and high-speed. To produce radial tyres an investment in a completely new multi-billion-rand plant would be needed, which is not feasible in the current economy.

“The bias industrial and off-the-road tyres manufactured at the Port Elizabeth plant which have since been trumped by a growing trend in the production of radial tyres globally, has meant a steady decline in market demand over the years, eroding profitability for BSAF,” says Jacques Fourie, BSAF Chief Executive. “All these technical and economic factors combined have created an environment in which the PE factory is unable to continue running, despite all efforts to sustain the operation. To preserve the competitiveness of BSAF and a sustainable future for its employees, partners and stakeholders, the proposed closure of the PE plant is the only viable option,” he adds.

Bridgestone Tyre says the proposal to close the PE plant has been reached following very serious consideration and has not been taken lightly. In recent years the company has considered many other alternatives, including cost containment measures, the sale of the plant to a suitable buyer, export opportunities, public funding and possibly relocating different product lines to PE. However, while some of these options have been explored thoroughly, the current market dynamics make it extremely challenging to find a longer-term sustainable solution.

BSAF made assurances that it would exercise due diligence to ensure compliance with all legal requirements and accepted practices, as well as to ensure that all 252 affected employees are treated fairly and supported through the transition.

“We realise the impact the project will have on the personal lives of PE employees and we are committed to mitigate the impact of the proposed closure. Fair severance packages will be provided and where possible, skills will be redeployed,” Jacques Fourie concludes.

BSAF, employing over 2,000 people, remains fully committed to its business in Southern Africa and its Brits manufacturing facility which continues to produce radial tyres for OEMs and replacement customers.

You Might Also Be Interested In

Latest Tyres

  • Car
  • Bike
  • Truck
  • Apterra Cross
    Apterra Cross
    205/65 R16tubeless
    Rs6,100
    • iconFuel Efficient
    • iconWet Grip
    Contact Dealer
  • AT 20 Grand Trek
    AT 20 Grand Trek
    265/65 R17 110Stubeless
    Rs14,699
    • iconFuel Efficient
    • iconWet Grip
    Contact Dealer
  • FR500
    FR500
    185/65 R14 86Htubeless
    Rs3,491
    • iconFuel Efficient
    • iconWet Grip
    Contact Dealer
  • UM 551
    UM 551
    165/80 R14 85Ttubeless
    Rs3,505
    • iconFuel Efficient
    • iconWet Grip
    Contact Dealer
  • Smart UX Royal
    Smart UX Royal
    215/60 R17tubeless
    Rs8,055
    • iconFuel Efficient
    • iconWet Grip
    Contact Dealer
  • ContiMaxContact MC5
    ContiMaxContact MC5
    215/50 ZR17 95Wtubeless
    Rs12,704
    • iconFuel efficient
    • iconWet Grip
    • iconDry Grip
    • iconHandling
    Contact Dealer
  • CINTURATO P7
    CINTURATO P7
    245/40 R17 91Wtubeless
    Rs16,830
    • iconWet Grip
    • iconDry Grip
    • iconHandling
    • iconLow noise
    Contact Dealer
  • Pilot Sport 4
    Pilot Sport 4
    215/50 R17 95Wtubeless
    Rs11,829
    • iconFuel Efficient
    • iconWet Grip
    Contact Dealer
  • Smart Blaze RYDR BR43
    Smart Blaze RYDR BR43
    140/70-17tubeless
    Rs4,200
    • iconFuel Efficient
    • iconWet Grip
    Contact Dealer
  • Conta 725
    Conta 725
    90/90 R12tubeless
    Price Coming Soon
    • iconFuel Efficient
    • iconWet Grip
    Contact Dealer
  • Gripp XL
    Gripp XL
    90/90 R19 52Ptube
    Rs2,010
    • iconFuel Efficient
    • iconWet Grip
    Contact Dealer
  • M6303
    M6303
    90/90 R12 54Jtubeless
    Price Coming Soon
    • iconFuel Efficient
    • iconWet Grip
    Contact Dealer
  • BT SPORTMAXX
    BT SPORTMAXX
    140/70 R17tubeless
    Price Coming Soon
    • iconFuel Efficient
    • iconWet Grip
    Contact Dealer
  • Feelfree
    Feelfree
    120/70 R15 56H M/Ctubeless
    Price Coming Soon
    • iconFuel Efficient
    • iconWet Grip
    Contact Dealer
  • Conti Aqua Gripp
    Conti Aqua Gripp
    3.00-18 6PRtube
    Rs1,560
    • iconDry Grip
    • iconWet Grip
    Contact Dealer
  • Zapper S
    Zapper S
    140/70-14tubeless
    Rs2,625
    • iconFuel Efficient
    • iconWet Grip
    Contact Dealer
  • X INCITY XZUE3+
    X INCITY XZUE3+
    295/80 R22.5na
    Price Coming Soon
    • iconFuel Efficient
    • iconWet Grip
    Contact Dealer
  • ENDUTMRACE RD
    ENDUTMRACE RD
    315/70 R22.5na
    Price Coming Soon
    • iconFuel Efficient
    • iconWet Grip
    Contact Dealer
  • JET XTRA
    JET XTRA
    8.25-16na
    Price Coming Soon
    • iconFuel Efficient
    • iconWet Grip
    Contact Dealer
  • STEEL MUSCLE-S3P4
    STEEL MUSCLE-S3P4
    10.00 R20tube
    Price Coming Soon
    • iconFuel Efficient
    • iconWet Grip
    Contact Dealer
  • Mile XL X3 R
    Mile XL X3 R
    295/95 D20na
    Price Coming Soon
    • iconFuel Efficient
    • iconWet Grip
    Contact Dealer
  • TG 01
    TG 01
    10 R 20tube
    Rs43,000
    • iconFuel Efficient
    • iconWet Grip
    Contact Dealer
  • AGB 21
    AGB 21
    295/80 R 22.5tubeless
    Rs36,000
    • iconFuel Efficient
    • iconWet Grip
    Contact Dealer

Best Tyres

  • Car
  • Bike
  • Truck
  • SecuraDrive
    SecuraDrive
    185/65 R15 88Htubeless
    Rs4,445
    • iconFuel Efficient
    • iconWet Grip
    Contact Dealer
  • ZLX
    ZLX
    145/80 R12 74Ttubeless
    Rs2,250
    • iconWet Grip
    • iconDry Grip
    Contact Dealer
  • Milaze
    Milaze
    145 R12 86Qtubeless
    Rs1,871
    • iconFuel Efficient
    • iconWet Grip
    Contact Dealer
  • Vectra
    Vectra
    155/80 R13 79Stubeless
    Rs2,400
    • iconWet Grip
    • iconDry Grip
    • iconHandling
    • iconLow noise
    Contact Dealer
  • Fuel Smarrt
    Fuel Smarrt
    155/65 R14 75Ttubeless
    Rs3,125
    • iconFuel efficient
    • iconDry Grip
    Contact Dealer
  • Taximax
    Taximax
    165/80 R14tubeless
    Rs2,800
    • iconFuel Efficient
    • iconWet Grip
    Contact Dealer
  • ZVTV
    ZVTV
    195/55 R16tubeless
    Rs7,325
    • iconWet Grip
    • iconDry Grip
    Contact Dealer
  • Alnac
    Alnac
    155/70 R14 77Ttubeless
    Rs3,100
    • iconWet Grip
    • iconDry Grip
    • iconHandling
    • iconLow noise
    Contact Dealer
  • MILAZE
    MILAZE
    80/100 R18 54Ptubeless
    Rs1,555
    • iconLow noise
    • iconDry Grip
    • iconWet Grip
    Contact Dealer
  • SECURA ZOOM F
    SECURA ZOOM F
    80/100 R18 47Ptubeless
    Rs1,445
    • iconFuel Efficient
    • iconWet Grip
    Contact Dealer
  • GRIPP
    GRIPP
    100/90 R17 55Ptube
    Rs2,020
    • iconFuel Efficient
    • iconWet Grip
    Contact Dealer
  • Nylogrip Plus
    Nylogrip Plus
    3/18tubeless
    Rs1,500
    • iconFuel Efficient
    • iconWet Grip
    Contact Dealer
  • PILOT SPORTY
    PILOT SPORTY
    90/90 R17 49Ptubeless
    Rs2,596
    • iconFuel Efficient
    • iconWet Grip
    Contact Dealer
  • Zoom XL F
    Zoom XL F
    80/100 R18 47Ptubeless
    Price Coming Soon
    • iconFuel Efficient
    • iconWet Grip
    Contact Dealer
  • MoGrip Meteor M
    MoGrip Meteor M
    3/18na
    Rs1,825
    • iconFuel Efficient
    • iconWet Grip
    Contact Dealer
  • Nylogrip Ezeeride
    Nylogrip Ezeeride
    3.00/17tube
    Rs1,525
    • iconFuel Efficient
    • iconWet Grip
    Contact Dealer
  • WINMILE D
    WINMILE D
    295/80 R22.5na
    Price Coming Soon
    • iconFuel Efficient
    • iconWet Grip
    Contact Dealer
  • FM Super
    FM Super
    10.00-20/16na
    Price Coming Soon
    • iconFuel Efficient
    • iconWet Grip
    Contact Dealer
  • MUSCLEROK
    MUSCLEROK
    9.00-20tube
    Price Coming Soon
    • iconFuel Efficient
    • iconWet Grip
    Contact Dealer
  • HCL Super
    HCL Super
    10.00-20/16na
    Price Coming Soon
    • iconFuel Efficient
    • iconWet Grip
    Contact Dealer
  • Lug Plus
    Lug Plus
    10.00-20/16na
    Price Coming Soon
    • iconFuel Efficient
    • iconWet Grip
    Contact Dealer
  • Mile XL Rib Pro
    Mile XL Rib Pro
    10.00-20/16na
    Price Coming Soon
    • iconFuel Efficient
    • iconWet Grip
    Contact Dealer
  • Lug XL Pro
    Lug XL Pro
    10.00-20/16na
    Price Coming Soon
    • iconFuel Efficient
    • iconWet Grip
    Contact Dealer
  • THE LUG-PLUS
    THE LUG-PLUS
    8.25-20tube
    Price Coming Soon
    • iconFuel Efficient
    • iconWet Grip
    Contact Dealer
×
Which is your city ?