MADRID, Aug 21 (EUROPA PRESS) –
The Japanese tire manufacturer Bridgestone has announced its intention to close its production facility in Port Elizabeth, South Africa, as part of the company’s strategic plan to focus on the most profitable and growing tire segments.
As reported by the company, the announcement of the closure of this factory is in line with its medium-term strategic plan and affirmed that it has already started the administrative process to proceed with the closure of this South African center.
The Asian firm indicated that in recent years its financial stability has been affected by economic and industry conditions and highlighted that the Port Elizabeth plant has focused on the production of a type of tire that is disused around the world and which is ceasing to be marketed in South Africa due to lack of profitability.
“The effects of a contracting economy and an influx of cheap imports, compounded by rapid changes in the tire industry, have prompted Bridgestone Southern Africa to restructure its operations,” the company explained.
The company’s director general in South Africa, Jacques Fourie, stated that the type of industrial and off-road tire produced in this factory has experienced a worldwide decline in favor of radial tires, which has caused a drop in demand in the recent years, “eroding” the profitability of the company’s operations in the country.
The company, which noted that this decision has been made after conducting an exhaustive business analysis and has not been done “lightly,” said the factory closure will affect 252 workers.