From Staff & Wire Reports

Bridgestone Corp. said it hopes to maintain a 30 percent growth rate in China, thanks to a spurt of growth in the Chinese OE market.

"Chinese sales were up more than 30 percent in 2005, and we expect the same increase this year," said Hiromichi Odagiri, chief executive for Bridgestone China. "We have run quite well in the first half."

China, which had relatively flat new vehicle production in 2005, has already produced 28.9 percent more vehicles compared to 2005, said the PRC Ministry of Commerce.

Bridgestone claims it has a 12 percent marketshare in China, and China represents about 5 percent of the company’s global sales.

A company official said one of the major obstacles Bridgestone faces in China is the reliance on imports of natural rubber, on which is hit by a 20 percent duty by the government. Bridgestone said it currently imports 70 percent to 80 percent of the natural rubber it needs from Thailand and Indonesia, with the rest from southern Chinese provinces.

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