Bridgestone sets up testing, research unit in China

Tokyo --Bridgestone Corp. has announced that it will construct a new technical centre in China. The centre will be built next to Bridgestone's car tyre factory in Wuxi, with operations expected to begin in July 2006. It will be capitalised, said Bridgestone, with US$7.25 million (approximately Euro 6 million), while a total of US$14 million (approximately Euro 11 million) has been earmarked for investment in the project. The unit is likely to employ about 20 people.

The centre appears to be more about quality control and testing materials for production than research and development. Bridgestone says the main activity of the centre will be for assessment of raw materials for tyres. The unit will be operated by a new company, Bridgestone (China) Research & Development Co., Ltd.and headed by Hideki Yurino. it will be a 100 percent subsidiary of Bridgestone (China) Investment Co., Ltd.

Quality control of raw materials has been a major issue for all rubber companies in China. Whereas in Europe, the supplier is generally responsible for the quality of the raw materials, the same does not generally hold true in China, according to sources in the country.

Bridgestone said the announcement follows a period of negotiations with Chinese authorities concerning the creation of an R&D site in the country. The new centre will drive speedy R&D to ensure the supply of excellent quality raw materials to Bridgestone's production and sales companies in China.

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Press release from Bridgestone

Bridgestone gets approval to set up 14 mln usd technical center in China AFX (Japan)