MEexico City -- Bridgestone Firestone de Mexico S.A. de C.V. will close its Mexico City tyre plant in the second half of 2008 as "essential" expansion of the facility is not feasible, the company said.
The Bridgestone Americas Holding Inc. subsidiary said the plant, situated in a metropolitan location, is surrounded by commercial and residential development. Additionally, much of the plant's land is leased from three owners, and one has decided not to renew the lease and instead is selling the property.
â€œExpansion of the plant is critical to the facility's future profitability through the production of more technologically sophisticated and market-demand driven products,â€ the company said in a statement.
The plant builds primarily cross-ply tyres for light truck and truck/bus lines.
The Mexico City facility employs 145 full-time hourly and 30 salaried employees. Many workers will be eligible to retire.
â€œWhile we found it necessary to make a tough decision to close the Mexico City plant, the recently completed expansion of our Cuernavaca facility and the opening of the state-of-the-art manufacturing plant in Monterrey underscore our respect for the work force in Mexico and our commitment to investment in this country,â€ said Ariel DePascuali, president of the Mexican subsidiary.
From Tire Business (A Crain publication)