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News

Bridgestone Firestone Chile To Close Plant

Nashville, Tenn. (Aug. 3, 2006) - Bridgestone Firestone Chile, S.A. (BFCH) today announced that it will be closing its Coquimbo, Chile, plant at year’s end. Due to intense competition from low-cost producers, the plant is not globally competitive and is projected to begin losing significant amounts of money with no viable strategy to reverse the losses. The plant, which has not generated a reasonable return on assets for several years, is equipped to make smaller or “mass-market” tires and bias tires, a segment of the market which is shrinking globally. The company has weighed all of the alternatives and even with new capital investment, under current market conditions, it would be difficult, if not impossible, to restore the plant to a competitive position.

“We have a difficult challenge in Coquimbo,” said John Jenkins, president of BFCH, a subsidiary of Bridgestone Americas Holding, Inc. (BSAH). “The reality is that as market conditions erode for low-end or “mass-market” tires, the plant, which for several years hasn’t generated a reasonable return on assets, is now projected to begin losing a significant amount of money. New capital investment will not reverse the market forces that have created the competitive obstacles we are facing.”

The Coquimbo plant, which began operations in 1975, was purchased by BFCH in 1999 and produces radial and bias ply passenger and light truck tires, truck and bus, and off-the-road tires. More than 70 percent of the tires made at the plant are in the low-end, shrinking, “mass market” segment and include bias ply tires that are unique to this market. The facility employs more than 470 active teammates.

BFCH will continue to maintain a sales office in Santiago. The company will continue to provide first-rate support to its dealers and plans to grow its Family Channel dealer base in Chile as well as in Bolivia and Peru, markets that have been supported by Chilean products. BFCH will supply tires to these markets from manufacturing facilities operated by its sister companies in Latin America. The company expects that with its excellent dealer network, the Bridgestone and Firestone brands will continue to be a popular choice for consumers in Chile, Bolivia and Peru.

“This has been a very difficult decision to make,” said Jenkins. “The closing will be done in full accordance with Chilean labor law. Teammates at the Coquimbo plant are being informed, and we are anticipating a closure near the end of the year. We have contacted local government leadership, the union and the community to explain our decision as well.”

About Bridgestone Firestone Chile, S.A.:
Bridgestone Firestone Chile, S.A.’s (BFCH) plant in Coquimbo manufactures radial passenger and light truck, truck and bus, and off-the-road tires. More than 70 percent of the tires made at the plant are in the “mass market” segment. The plant built its first tire in 1975. BFCH, a subsidiary of Bridgestone Americas Holding, Inc., is also responsible for sales to Bolivia and Peru and has established dealers and dealer networks throughout Chile.

About Bridgestone Americas Holding, Inc.:
Nashville-based Bridgestone Americas Holding, Inc. is the U.S. subsidiary of the Bridgestone Corporation. BSAH, through its subsidiaries, develops, manufactures and markets a wide range of Bridgestone, Firestone and associate brand tires to address the needs of a broad range of customers, including consumers, automotive and commercial vehicle original equipment manufacturers and those in the agricultural, forestry and mining industries. The companies also produce air springs, roofing materials, synthetic rubber and industrial fibers and textiles and operate the world’s largest chain of automotive tire and service centers.