Japan’s leading tire supplier Bridgestone said Monday it will shutter a factory in Hong Kong as part of a restructuring scheme to relocate capacity to Thailand.
The aircraft tire retread plant will close its doors for the last time at the end of June next year. Including sales associates, the location employed 102 as of April 30. The company has not disclosed how the jobs will be affected.
Bridgestone will concentrate and expand production capacity at its factory in Thailand’s Chon Buri province. The site will also absorb Hong Kong’s distribution functions.
The Thai plant, built in 2017, has the advantage of being located close to key clients. Concentrating capacity in the site will improve logistics efficiencies for deliveries.
The Hong Kong plant opened in 1991 and served as a supply hub for customers across Asia and Oceania. The closure will shrink the number of Bridgestone aircraft retread plants to five from six.
Bridgestone also has aircraft retread plants in Japan, China, the U.S. and Belgium. The group operated roughly 160 total production sites worldwide in 2019, and aims to reduce its footprint by 40% by the end of 2023.