Bridgestone Corporation has concluded an agreement to establish a joint venture for anti-vibration rubber for automobiles with Sundaram Industries Ltd. of the TVS Group. With an expected employment of about 700 persons, the joint venture, to be set up in Chennai in which Bridgestone will have 51 per cent share in equity, is estimated to cost Rs. 358 million.
As a member of the TVS Group, Sundaram Industries is a leading company of anti-vibration rubber for automobiles in India, where it has a high presence.
Bridgestone concluded a technical assistance agreement in anti-vibration rubber for automobiles business with Sundaram Industries Ltd. in 1996, and the two companies have built a close relationship over the years. Bridgestone believes the forthcoming joint venture will enable production and sale of high-quality products boasting technical superiority at a competitive cost in the expanding Indian market and lead to an enhanced global supply chain.
Anti-vibration rubber for automobiles is used in the engine and chassis of an automobile to suppress noise and vibration, and thus contribute to a quieter, more comfortable driving experience. Bridgestone which has production and sales sites in Japan, the US, China and Thailand supplies anti-vibration rubber for automobiles to automakers with global operations.
The Bridgestone Group’s goal is to establish the status of being the undisputed No.1 tyre and rubber company both in name and reality. Anti-vibration rubber for automobiles is one area that the group has positioned itself for “concentration”.
