Posted: July 2, 2008

From aftermarketNews Staff & Wire Reports

Bridgestone Americas Holding (BAH) has announced plans to close its Firestone Industrial Products Co. air spring plant in Noblesville, Ind.

BAH has sent a “Notice of Potential Plant Closure” to the United Steelworkers, which represents workers at the 72-year-old plant. The notice calls for the plant to be closed in 2009.

The company, which produces Airide brand air springs for commercial truck and passenger vehicles, claims that global competition is “making it difficult” for the plant to remain competitive. BAH, though, said that no final decision on the future of the plant has been made.

“We have a difficult challenge in Noblesville,” said Mike Cerio, president of Firestone Industrial Products. “Our main competitors are manufacturing in low-cost producing countries, making it very difficult for FSIP to continue to operate this facility, one which is hampered by aging equipment, the world’s highest wage and benefit structure and a mature domestic market.

“High manufacturing and logistics costs prohibit us from exporting our products from this facility into these emerging markets,” he said. “Meanwhile, imports from lower-cost manufacturers abroad are gaining ground in the U.S. Even with substantial new capital investment, market forces make it extremely difficult for the Noblesville plant to be globally competitive.” (Courtesy of Tire Review)