TYRE maker Bridgestone has selected the site to build its first tyre plant in Russia.
The plant, which will have become Bridgestone’s 47th plant in the world, will cost US$375 million and is expected to be completed in three years time.
It is planned to run a capacity of 12,000 units/day, or an estimate of 4.4 million units annually, mainly focusing on winter tyre production for Russia’s domestic market and the CIS states. By second half of 2018, the plant is expected to reach full capacity.
The world’s largest tyre and rubber company will be joined by Mitsubishi in the project. The latter will be holding a 10% stake in the joint venture.
The 800,000 square meter site is located in one of the first three certified Russian industrial parks – the Zavolzhye Industrial Zone in Russia’s Ulyanovsk region.
In lieu of the project, Mitsubishi Corp. will buy a 20% stake in Moscow-based Bridgestone C.I.S. L.L.C., providing Bridgestone C.I.S. with a capital of about US$180 million.