Bridgestone to expand Canadian Tire Plant

Canada: Bridgestone Canada Inc. as a part of their five-year investment plan has decided to expand two of its tire manufacturing plants located in Canada and North Carolina.

The subsidiary of Bridgestone Inc., in Canada is expected to invest about USD250 million for the multiphase expansion which has already started, as claimed by a spokesperson of the company. The expansion would increase the facility size from present 1 million square feet to 1.13 million square feet.

This step would create jobs in the community, the spokeswoman said. “Although no jobs will be created at the plant, the project will be a major investment in the more than 1,300 jobs for the long-term viability of the plant.”

The expansion of the plant located in Canada would increase the production of the car and truck tires by 3,000 tires per day eventually leading the total daily production capacity to 20,000 tires. The factory is currently producing tires ranging from 15-18 inch for passenger cars, light trucks and SUV’s which after the upgrade would be capable of producing 18-22 inch SKU’s.

“Our investment in updated equipment and improved manufacturing processes reflects our ongoing commitment to identifying new, cost effective and innovative ways to serve consumers, dealers and original equipment manufacturers,” said Robert Verreault, plant manager at the Joliette operation.

According to a recent report published by TechSci Research, “Canada Tyre Market Forecast & Opportunities, 2020”, Canada tire market is forecast to increase at a CAGR of around 6% till 2020. Large vehicle fleet and growing hybrid vehicle sales would be the major factors driving Canada tire market over the forecast period. Passenger car tire market is the dominant segment followed by commercial vehicle tire segment and two-wheelers tire segment. Further, the replacement tire segment leads OEM tire segment by huge margins and it is anticipated that this trend will continue through the forecast period. Michelin, Goodyear and Bridgestone have domestic production facilities in the country, while all other players cater to the growing demand for tires through their sales and marketing offices in Canada.