TOKYO (Aug. 3)—Bridgestone Corp. has set up a joint venture in China for urethane foam for automobile seats and will build a plant by next year in Guangzhou to replace its partner's existing facility there.
Bridgestone has established Guangzhou Bridgestone Chemical Products Co. Ltd. in partnership with the automotive components arm of Guangzhou Automobile Industry Group Co. Ltd. Bridgestone owns 52 percent of the joint venture, which has a startup capitalization of $8 million.
Guangzhou Bridgestone Chemical Products will produce urethane foam at a factory inherited from its Chinese parent until its new plant is completed in the second half of 2005. The facility will increase the firm's production capacity fivefold.
Guangzhou Bridgestone Chemical Products will serve burgeoning demand from Chinese auto makers for high-quality seat materials for automobiles. The company will supply its urethane foam to local seat manufacturers.