At the same time, the prices of retreaded truck and bus tyres sold in the Japan replacement market by Bridgestone’s subsidiaries will be increased by 5 percent. Retreaded tyres are those vulcanized with new tread rubber for reuse. This price increase applies to both summer and winter tyres, and will be effective 1st September, 2011.
The increase is attributed to the historic high price levels of raw materials, including natural rubber and petrochemical-based materials such as synthetic rubber and carbon black. Bridgestone has implemented a number of internal measures to mitigate rising raw material prices, such as increased productivity and enhanced manufacturing efficiencies. However, due to the larger portion of natural rubber necessary in the production of truck and bus tyres compared to passenger tyres and other groups, prices have risen to a level that cannot be overcome entirely through internal measures for these products. As a result, Bridgestone has made the decision to raise prices on new truck and bus tyres for the second time this year.
The average percentage of price increase of retreaded tyres manufactured and sold by Bridgestone’s subsidiaries is less than that of new tyres because of the smaller amount of raw materials newly required in the production of retreaded tyres compared to new tyres.
Bridgestone Group will continue to implement internal measures to mitigate rising raw material prices, however, if raw material costs remain at high levels, additional price increases may be necessary in the future.
Definition of Bridgestone’s subsidiaries:
“Subsidiaries” are the companies located in Japan which manufacture and sell retreaded truck and bus tyres, and Bridgestone’s ownership ratio of the company, direct or indirect, is more than 50 percent.
About Bridgestone EMEA (Europe, Middle East and Africa)
Bridgestone EMEA, with headquarters in Brussels, Belgium, is a wholly owned subsidiary of Tokyo-based Bridgestone Corporation, the world’s largest tyre and rubber company. Bridgestone EMEA operates in more than 60 countries and has over 18200 employees. Across the region it has 14 tyre and tyre related plants, a major R&D Centre and a proving ground. Bridgestone EMEA’s premium tyres are sold in Europe, Middle East, Africa and globally.