Bridgestone 2009 Annual Report Download - page 16

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RETREAD SOLUTIONS BUSINESS
Bridgestone recognizes its societal responsibility to contribute
to the conservation of resources and energy. As a result, we
are allocating management resources to the retread solutions
business. This business allows us to provide our customers with
a comprehensive package of new tires and retreading and
maintenance services, thereby assisting them in reducing their
overall tire-related costs.
Retread tires are used on a wide range of vehicles, including
trucks and buses, aircraft, and construction and mining vehicles.
In North America and Europe, retread businesses servicing truck
and bus operators are particularly well established—representing
roughly half of tire demand for trucks and buses.
With retread operations positioned as a high-priority business,
the Group is rapidly penetrating markets for retread tires for trucks
and buses in Japan, China, and other Asian countries. We plan
to develop that business by taking full advantage of the retread
technology and expertise of Bandag, Incorporated, which we
acquired in 2007.
In Japan, in June 2008 we launched these retreading operations
under the name “ECO Value Pack,” and we currently operate 10
locations. By the end of 2009, ECO Value Pack was under contract
to service approximately 10,000 vehicles. For 2010, the Group
has set an objective of more than 30,000 vehicles under contract.
Setting our sights on winning even more contracts, we plan to add
10 more domestic locations by 2013.
In July 2009, we announced our decision to open a retread
materials plant in Thailand in order to respond to the strong growth
in the Asia market. For the Bridgestone Group, that manufacturing
site is a step toward achieving further market penetration of the
retread business and building the foundation that will support the
solutions business in Japan, China, and other Asian countries.
Targeting the start of production in November 2010, we are
currently moving ahead with construction of the plant.
The Bridgestone Group will continue to analyze market trends
and make planned, strategic investments with a view toward
building a retread solutions business that can swiftly respond to
customer needs worldwide.
STRATEGY
The process of manufacturing retread tires
14 Bridgestone Corporation