Bridgestone 2004 Annual Report Download - page 21

19
Regional Review
Supporting our Chinese tire marketing is our new Che-zhi-yi (the name means “car wings” in
English) network of affiliated retailers. Fifty Che-zhi-yi outlets had opened or were under construc-
tion at 2004 year-end, and we plan for the Che-zhi-yi network to have about 200 outlets by the end
of 2006. Altogether, we market tires in China through nearly 5,000 outlets. Managing tire produc-
tion, marketing, and service through the newly established Bridgestone (China) Investment Co.,
Ltd., will strengthen our Chinese presence further. Also in China, we began producing rubber
antivibration components for automobiles in January 2005 at a new plant in Jiangsu Province.
Our Indian operations also posted double-digit growth in unit sales of tires in 2004. We continue
to expand our Indian operations by accompanying local production with a growing network of affil-
iated retailers.
In our fast-growing Russian operations, unit sales of tires surged more than 50%. Leading our
expansion in the Russian market is our Pole Position network of affiliated retailers. That network
had 140 outlets at 2004 year-end.
Supply constraints prevented us from capitalizing on an increase in Middle Eastern demand in 2004,
which was driven by rising oil prices. Our unit tire sales there were basically unchanged.
In Turkey, our production and marketing operations faced a surge in imports, which resulted
from the appreciation of the Turkish currency. Our unit tire sales in Turkey grew, however, sup-
ported by expanded business with automakers.
The appreciation of local currencies and the resultant influx of imports were also issues for
our production operations in Australia, New Zealand, and South Africa. Our unit tire sales in those
nations were basically unchanged despite robust demand. We are expanding production capacity
for high-performance tires in South Africa, and we will begin producing runflat tires there in 2005.
Bridgestone Group operations in Africa include the world’s largest rubber estate, in Liberia.
The Brits Plant, in South Africa, will soon
become the second Bridgestone plant outside
Japan to produce runflat tires. Runflat produc-
tion got under way in December 2004 at the
Poznan Plant, in Poland.
We began producing urethane foam for
automobile seats in China in August 2004.
Guangzhou Bridgestone Chemical Products
Co., Ltd., a joint venture with the automotive
components arm of Guangzhou Automobile
Industry Group Co., Ltd., is producing the ure-
thane foam initially at a plant inherited from
its Chinese parent. It will later shift produc-
tion to a new plant scheduled for completion
in the latter half of 2005. We own 52% of the
joint venture. A global leader in urethane
foam for automobile seats, the Bridgestone
Group also produces that material at plants
in Japan and in the United States.
Her Royal Highness Crown Princess Maha Chakri Sirindhorn, of Thailand, accepts
an offering in January 2005 from the representative of the Bridgestone Group
companies in her nation. The donation was in support of relief efforts for sur-
vivors of the December 26 Indian Ocean tsunami. Our subsidiaries in Indonesia,
Malaysia, and India also made contributions to local relief efforts, as did their
counterparts in other nations.
On behalf of the Bridgestone Group worldwide, Bridgestone Corporation
contributed ¥100 million (about $900,000) in January 2005 to support the relief
efforts. We made the donation on behalf of the Bridgestone Group through the
Japan Red Cross, and we instructed that organization to allocate the funds at its
discretion.
The contributions reflect our long-standing commitment to Southeast and
South Asia. Our Rangsit Plant has produced tires in Thailand since 1969.
Growth challenges