TOKYO — Bridgestone Corp. has ceased production at a tire factory in Rangsit, Thailand, and consolidated the capacity from that 54-year-old facility at two other plants it operates in Thailand.
Bridgestone said its decision to close the plant is tied to its overall strategy to "rebuild earnings power" throughout its global structure.
The company did not disclose estimates as to what the closing might cost or the expected savings that might accrue, nor say what might happen to the physical facility.
The closing affects approximately 1,070 employees at the Rangsit plant in Pathum Thani Province in northern Thailand. The plant had capacity for passenger, light and medium truck, agricultural, earthmover and industrial tires.
Bridgestone is moving capacity of approximately 2,100 truck/bus tires a day to a 19-year-old plant in Chonburi that heretofore was focused on production of light truck tires. Passenger tire capacity of about 2,280 units a day is being consolidated at a 28-year-old factory in Nong Khae, Saraburi, that's dedicated to passenger and light truck tires.
Bridgestone also operates an earthmover tire plant in Thailand, in Amata City, Rayong.
Bridgestone said it "thoroughly and comprehensively" considered various factors, including the impact on the local communities, and examined the "optimal supply structure" to secure a competitive advantage before reaching its decision to consolidate the plant's capacities with other factories.
The company said it is taking "appropriate measures" in accordance with local laws and regulations, as well as labor agreements, to minimize the impact on the employees and the local communities.
Rangsit is a city of about 80,000 residents.