Bridgestone to lift tyre prices in Japan

Tokyo -- Bridgestone Corp. has announced that it will raise prices on February 1, 2006 for tyres, tubes and flaps sold in the replacement market in Japan. Prices for winter tyres will be increased on April 1, 2006. Specific price increases include five per cent for passenger car and light truck tyres, seven per cent for truck and bus tyres, seven per cent for construction vehicle cross-ply tyres, 10 per cent for construction vehicle radial tyres, and five per cent for other kinds of tyres (excluding those for motorcycles) and for tubes and flaps.

Bridgestone increased prices for tyres sold in the replacement market in Japan by an average of five per cent to six per cent in June last year, blaming the increase in higher prices for natural rubber. This time, the company says higher crude oil prices have forced price rises in synthetic rubber and carbon black. Other raw materials such as steel cord have also been climbing. Further, structural problems with global supply and demand are expected to drive prices even higher going forward. Meanwhile, NR prices have not declined.

In a statrement, Bridgestone said, "Bridgestone has endeavored to offset the rises in raw material prices through improvements in productivity and cost savings. But those rises have proven too large and persistent to absorb entirely through internal measures. "