Bridgestone Corporation, the world's largest tire and rubber company, will build a factory in the Ulyanovsk region, a news report said Monday.
The plant will begin production in the first half of 2016, Vedomosti reported. The plant is expected to produce over 4.4 million tires per year, or 12,000 tires per day, by the second half of 2018 and will primarily focus on winter tires for the local market.
The new plant will be managed by Bridgestone Tire Manufacturing C.I.S., a tire-manufacturing company established jointly by Japanese multinationals Bridgestone and Mitsubishi.
Bridgestone Corporation will take a 90 percent equity position in the company, and Mitsubishi will take 10 percent. The total investment in the project by the two companies will be about 12.5 billion rubles ($400 million).
Bridgestone explained their choice in partners by pointing out that they already had experience working with Mitsubishi in a joint venture producing tires in Thailand.
"In June, the companies will sign an agreement of land purchase, and by the end of July, we expect to complete all the necessary procedures to begin construction," Dmitry Ryabov, general director of the Ulyanovsk region's Development Corporation, told the business daily.
A Message from The Moscow Times:
Dear readers,
We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."
These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.
We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.
Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.
By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.
Remind me later.
