Last week, Bridgestone announced a plan to close its bias tire manufacturing plant in Port Elizabeth, South Africa. The closure is in line with the company’s recently announced strategy to focus on premium profitable growth segments of its business. Bridgestone Southern Africa (BSAF) has initiated a Section 189 notice and a consultative process in compliance with the South African Labour Relations Act.
Bridgestone said that the Port Elizabeth plant, which is 84 years old, is specifically geared towards the production of older bias tires, which are globally in decline and being phased out in South Africa as it is an unprofitable market. The effects of a shrinking economy and an influx of cheap imports compounded by rapid changes in the tire industry has prompted BSAF to restructure its operations. The agricultural industry is shifting to radial tires, which are longer lasting, and the production of which is modern and high-speed. Converting the plant to produce radial tires would require a substantial investment that is not feasible in the current economy. The move will affect 252 employees. A second Bridgestone factory in Brits, South Africa, will remain in operation.
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