Bridgestone to end tyre manufacture in Australia, New Zealand

ERJ staff report (DS)

Christchurch, New Zealand -- Bridgestone Australia Ltd. (BSAL) is to close its tyre manufacturing facilities in Adelaide (South Australia) and Christchurch (New Zealand) with the loss of around 875 jobs. This will bing to an end Bridgestone's manufacture of new tyres in the region.

The closures will take effect at the New Zealand manufacturing plant by the end of 2009 and at the Australian facility no later than 30th April 2010. The Adelaide facility has been operating since 1965 and Christchurch since 1947.

The closures will affect around 275 employees in Christchurch and 600 in Adelaide. Bridgestone said its distribution, customer service and retail networks in the region, which employ more than 1,500 people, will continue unaffected.

"As the last tyre manufacturer in Australia and New Zealand, we have all worked hard over many years to avoid today's decision. However the unfortunate reality is that Bridgestone Australia Ltd. can no longer commercially justify the continued operation of these facilities." said Andrew Moffatt, Senior Executive Director of BSAL.

When Goodyear closed a plant in Australia in June 2008, Bridgestone's chairman and chief executive Mac Ohashi said "Bridgestone remains committed to local tyre manufacturing and we are proud of providing quality Australian-made tyres to our customers." At the time he also said, "We understand the increasing challenges to Australian manufacturing."

Moffat said in the recent announcement, "We are proud of the fact that we have managed to keep these two manufacturing facilities open for so long and have provided employment and economic benefits to so many people over such a long period."

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Press release from Bridgestone

Previous comments (June 2008) from Bridgestone in The Australian