Bridgestone Delays Production at New Tire Plant in Thailand

Tiremaker Bridgestone Corp. won't begin making tires for construction and mining equipment at its new factory in Rayong, Thailand, until demand for coal-mining equipment revives, according to CEO Masaaki Tsuya.

The 50 billion-yen ($491 million) facility had been scheduled to launch production in the first half of 2015 and reach daily output of 85 tons by the first half of 2019. But Tsuya tells Bloomberg News "it will take some time" before the market for huge tires for mining vehicles improves.

Coal prices are at their lowest level in nearly five years. Bloomberg notes that several large coal producers are suspending production at some facilities because of a supply glut.

The new Rayong factory was intended to make tires mainly for export. Tsuya tells Bloomberg the factory may initially make anti-vibration rubber parts. He also reiterates Bridgestone's forecast that its net income will jump 41% to a record 285 billion yen ($2.8 billion) in the fiscal year ending next March 31.