Bridgestone Hungary expansion going as per plan

Hungary: The officials at Bridgestone Europe have dismissed the recent rumours regarding the company’s intentions of delaying the planned expansion of its tyre manufacturing units at Tatabanya, Hungary.

Earlier in October 2012, the multinational declared about the USD346 million expansion of the Hungary tyre plant, which would enhance the production of the facility at a capacity to almost 6.5 million tyres per year, translating into around 18,000 tyres a day.

The facility is being specifically used for the production of premium radial tyres installed in passenger cars, including the run-flat and UHP tyres. Moreover, the expansion is expected to create more than 500 new domestic jobs in the country, with the plant scheduled to be completed in the first half of 2017.

When questioned about the expansion, being delayed by almost three years, the managing director of Bridgestone Europe consumer business unit (CBU), Jake Romsholt, commented that the project is approximately on time and there was no reassessment about the same. Also, Bridgestone executive stated that the reports of delay were anticipated due to the misinterpretation by Hungarian press release.

Furthermore, Mr. Romsholt, at the launch of Bridgestone DriveGuard run-flat tyre in Nice added that there is a possibility that the Hungary plant would also produce the newly inaugurated tyre.

The European version of Bridgestone Driveguard tyre is presently being manufactured solely at the Bridgestone Poznan, Poland facility.

According to TechSci Research Bridgestone production expansion plan in Hungary would not only lead the company to enhance its market share in the entire area but also widen its presence in the overall European region. 

The recent report published by TechSci Research, “Hungary Tyre Market Forecast & Opportunities, 2020” indicate the dominance of passenger car segment in Hungary. More than 90% of the entire automotive fleet in the country is captured by the passenger cars, which portrays the growing demand of passenger car tyres in Hungary. Whereas, the recent expansion by Bridgestone in the production of passenger car radial tyres would lead the tyre manufacturing giant to cater the segment at its brim and would also expand its share in the Hungary tyre industry.