Bridgestone 2004 Annual Report Download - page 20

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18
Bridgestone Annual Report 2004
Operating income in other regions declined 18% in 2004, to ¥17.7 billion ($170 million).
That decline reflected start-up costs associated with plant construction and expansion projects,
along with the adverse earnings effect of rising prices for raw materials. Sales in other regions
increased 15%, to ¥405.4 billion ($3.9 billion). Bridgestone Group companies raised their tire prices
during the year in all of the principal markets included in this regional category.
Our unit tire sales grew strongly in Southeast Asia, China, India, and Russia. The growth in
Southeast Asia included an increase in business with Japanese automakers there. Those automakers
are expanding their vehicle production in the region, especially in Thailand, to serve export markets.
Our operations in Southeast Asia continue to achieve growth in tire exports, too, and our newly
opened plant for truck and bus tires in Chonburi, Thailand, is expressly for serving export markets
worldwide. Southeast Asia’s market for replacement tires also continues to grow steadily.
Raw materials have been a traditional emphasis in our Southeast Asian production, and that
emphasis is stronger than ever. Our Thai operations produce steel cord and process natural rubber,
and they recently gained a plant for producing carbon black. We operate two rubber estates in
Indonesia. Our manufacturing network in Southeast Asia also includes several plants for diversified
products.
In China, we posted double-digit growth in unit sales of tires. We expect our tire sales in China
to continue growing rapidly, supported by expanding local production. Our third Chinese tire
plant began operation in 2004, and we plan to continue to expand our Chinese tire production. An
emphasis on raw materials is evident in our tire manufacturing in China, as in other nations. We are
building a plant in Shenyang to produce steel cord for truck and bus tires. That is in addition to sev-
eral Chinese plants where we produce diversified products.
Our Pole Position network of independent
Russian retailers is growing rapidly. The
network’s prime selling points include a
reassuring atmosphere and conscientious
service.
Our Che-zhi-yi network of tire sales and service centers serves China’s
growing ranks of car owners. Clean, attractive stores and conscientious
service are earning a big clientele for the network in numerous Chinese
cities.
Everyone at our new management company
for Chinese tire operations shares great
expectations for Bridgestone in the world’s
most-populous market.
Regional Review: Other Regions
Double-digit sales growth