In Costa Rica, Bridgestone began partial operations on May 11 and now announces that it will completely normalize its activities at the plant in Heredia by the end of June.
Following the outbreak of covid-19 in the country, the tire manufacturer decided to temporarily close the operations of its plant located in the canton of Belen.
As a result of the emergency that Costa Rica is going through due to the spread of the coronavirus, Bridgestone announced that it will temporarily close its industrial plant located in Belen, Heredia.
The company announced that its plant will remain inactive from March 26 to April 12 and that none of the 1,000 employees working on the premises will be dismissed.
Between January and June 2018, countries in the region imported new tires for $215 million, and 13% of the total was purchased by Auto Centro, Mizpa, Grupo Q, Vitatrac and Central Lubricants.
Figures from the information system on the New Pneumatic Tire Market in Central America compiled by the Business Intelligence Unit at CentralAmericaData: [GRAFICA caption="Click to interact with graphic"]
In 2015 countries in the region imported 130,650 tons of new pneumatic tires, worth $469 million, while Costa Rica exported 30,626 tons.
Data on the Pneumatic Tires Market in Central America, provided by the Business Intelligence unit at CentralAmericaData.com, shows that Guatemala led imports made by Central American countries in 2015, with a total of $132 million in value and 39,471 metric tons.
Bridgestone has announced the creation of a new division called Mexico and Central America, which involves the merger of operations in Costa Rica and Mexico, which together produce 11 million tires a year.
From next year the new division will be responsible for the markets of South America, Central America, Ecuador and the Caribbean. With this measure the aim is to "...
Tyre manufacturer Bridgestone has withdrawn from the free zone regime in order to export, with better benefits, under trade agreements with the countries of the Pacific Alliance.
The firm has dissolved Bridgestone de Centroamérica S.A, a company registered in the free zone regime, in order to centralize operations in the local company Bridgestone de Costa Rica, so that it can export under the conditions of the trade agreements.
Despite the presence in the market of low-priced tires, retreading is growing as the first choice for vehicle maintenance and cargo transport.
An article in Elfinancierocr.com discusses the retreading industry in Costa Rica, where most companies reported sales increases ranging up to 40% in recent months.
An example of the potential of this market is that of the manufacturer Bridgestone.
Bridgestone's accounting operations in at least seven countries in Latin America will be managed from Costa Rica in its new Shared Services Center in San Jose.
A statement from the Costa Rican Coalition for Development Initiatives (CINDE) reads:
• Costa Rica was selected as the site for operations after a rigorous review process.
• Bridgestone becomes the second advanced manufacturing company and the first Japanese company in Costa Rica that has both real production operations as well as a center for high value-added services.
The center will provide financial services to the whole of Latin America, and will begin by hiring 100 people.
Company representatives have announced the selection of Costa Rica for the installation of its financial services center, where it will serve all countries in Latin America.
Although the location of the center and the amount of the investment have not been announced, it was indicated that it will be sited close to the company’s plant, in the province of Heredia.
Company president said he discussed increasing current orders of 600 tons per month.
Guatemala is the largest supplier of natural rubber for Bridgestone in Costa Rica. About 600 tons of rubber of the 1.000 tons per month used, are produced by plants from small farmers in Guatemala.
In an interview with Óscar Rodríguez López, the company's president, Sigloxxi.com informs: "We are looking to partner with these small producers to see if we can someday make Guatemala, with regards to natural rubber, become one of the most important producers in Latin America. They still do not know this. It is still a dream, but today we are the main customers of Intros, the largest natural rubber company in the country."
Bridgestone's plant in the country will produce 200.000 tires per year for Volkswagen, starting in 2011.
A press release by the company also informs that the facility successfully passed Germany's quality controls, as they were approved as tire suppliers.
" ... it will produce the replacement tire for a sedan model", reports Nacion.com. "The tires will be included as original equipment in all Volkswagen vehicles manufactured at their plant in Chattanooga, Tennessee (U.S.)".
Auto parts companies are expecting exports to increase in the second semester of 2009.
For example, Bridgestone Costa Rica plans to export 25% more in the second half of the year when compared to the first.
Its commercial director, Alejandro Cortés, told Nacion.com that: "In the first semester, we sold 500.000 tires less (20% of total production). For the second half, we had originally expected another decrease of 150.000, but this won't happen.
In Costa Rica, multinational companies are worrying for delays in the law that modifies fiscal incentives at free ports.
Two articles in Nacion.com reveal Intel's and Bridgestone's concern for insecurity in investment planning caused by delays in the approval of the law, which is being studied by Congress.
Michael Forrest, general manager at Intel Costa Rica, explained the need to have certainties regarding the fiscal conditions of the new regime for planning long-term investments: "Countries in which we invest must provide confidence, political stability and understanding of the fiscal matter. If there is uncertainty in any of these aspects, doubts arise and we must look elsewhere".
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