Bridgestone Suspending Tire Production and all Capital Investment in Russia

Bridgestone Corp. is suspending the production of tires in Russia and halting exports to the country in response to the ongoing conflict in Ukraine.

In a statement 14 March, the group said it was ceasing production at the passenger car tire plant in Ulyanovsk, Russia, by 18 March.

The group will also freeze any new capital investment at the facility while halting exports of tires to Russia immediately.

Bridgestone said it was “concerned about the current situation in Ukraine” and that it hoped that peace would be restored in the country ‘as soon as possible’.

The Japanese group said it had donated €2.5 million to the United Nations High Commissioner for Refugees (UNHCR) for humanitarian assistance to Ukraine.

Located in the Zavolzhye industrial park and spanning ​​80.6 hectares, the Ulyanovsk facility was officially launched in December 2016.

As of December 2021, the plant had rolled out 5 million tires and employed over 1000 people.

According to Bridgestone, the plant is “one of the most advanced among all Bridgestone enterprises in the world.”

Product portfolio includes tires with standard sizes ranging from 13 to 19 inches – for cars, crossovers and SUVs, as well as tires homologated for supply to automakers as original equipment.

Bridgestone said the Russian operation contributes 2% of the group’s total annual revenue..

At the last count, over 300 international companies have withdrawn from Russia or suspended operations there over the past few weeks. On the automotive front, the list (a most extensive one can be found here, but also over at the Yale School of Management) is extremely long and includes Aston Martin, Bentley, Daimler, Ferrari, Ford, GM, Harley-Davidson, Honda, Hyundai, Iveco, Magna, Mazda, Nissan, Renault, Rolls-Royce, Uber, and Volkswagen.

Not only car and motorcycle makers, but other companies in the industry have pulled out as well, and even Formula 1 did the same. Until this past weekend, a few, including Bosch, Bridgestone and Pirelli, stood their ground, but are beginning to fold to the pressure as well.

Source:- European

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