Rubber Journal Asia Corporate Profile PRA: How does the ECOPIA tyre differ from other concept tyres that also feature fuel-efficiency?
product quality. We will be waiting for its results. PRA: How will the forecast that China is now shifting to consumer tyres and will start weaning off demand of truck tyres affect Bridgestone’s sales and production of these tyre segments?
Sato: The ECOPIA tyres combine eco-friendly performance in terms of higher fuel efficiency and safety, as opposed to conventional tyres. The Nano Pro-Tech compound used in ECOPIA tyres lowers the rolling resistance coefficient by reducing energy loss in the top compound during rotation. This means that ECOPIA tyres can travel a longer distance with less fuel in comparison with conventional tyres, and hence contribute to the reduction in CO2 emissions. Apart from that, the tread design features rib-linked blocks, which enhances contact pressure and wet braking performance at the same time. This promises reduced rolling resistance, without compromising on braking performance and safety in wet conditions. In the second half of 2013, we will be launching a new lineup of ECOPIA tyres across several markets in the Asia region, to increase our sales for by five times of the current sales in the next five years. The new line-up will be promoted not only based on its fuel-saving benefits, but also in terms of safety and its longer tyre life.
Sato: Regarding the PSR market in China, we foresee that it will grow continuously in accordance with its motorisation. As for TBR, it seems that the situation is more difficult considering the impact from the economic downturn in Europe and the introduction of the inflation control policy in China. There are many individual business proprietors who regard “cost” as an important factor when purchasing tyres in the market. They prefer reasonable costing tyres rather than premium ones. Our business environment in the TBR market is therefore challenging in this sense. However, as the road situation improves, higher quality tyres will be required. We expect that we will be able to strengthen our presence in China in line with the development of the Chinese market. Here is how we see tyre demand growth in China from 2012 to 2017: • PSR Replacement – About 80% growth • PSR new vehicle (Original Equipment) – About 20% growth • TBR Replacement – About 40% growth • TBR new vehicle – About 30% growth As for our sales estimation, we expect that our sales will exceed the demand mentioned above.
PRA: How are the Bandag Retread tyres and Airless tyres faring in the Asia Pacific markets? Sato: With respect to Retread tyes, since the merger of Bridgestone and Bandag in December 2006, we have been actively enhancing sales and marketing activities of Bandag retread tyres, and increasing new Bandag retread shops in the Asia Pacific region. Compared to new tyres, retread tyres require only 32% of the petroleum resources for production. Combining retread tyres with new tyre sales and maintenance service as a package to the customers, we, Bridgestone, are aiming to provide additional value to our customers. As for the Airless tyre, we are currently still advancing the R&D for our non-pneumatic (airless) concept tyre in order to put it to practical use on vehicles in the future. However, at this stage, we do not have a specific timing for its actual market launch.
PRA: Is Bridgestone shifting its focus on Asia, production and sales wise? Sato: According to the mid-term management plan 2012, which we had announced last October, we estimate that net sales will increase more than 5% in 2017 compared to 2012. As we expect that half of this growth will take place in the developed countries, such as the Americas, Europe and Japan, the sales in the developing countries will not increase dramatically in these five years in terms of global sales composition. On the other hand, production volume in the Asian region will definitely increase in these five years to cover tyre demand growth in the world. In 2012, production volume in the Asian region made up 20% of our global tyre production and we estimate this to increase to 30% in 2017. However, as we regard the Asian region as our export base, this increase in production does not necessarily mean that sales in this region will increase in proportion to its production volume increase. In the Asia Pacific region, India, Indonesia, Thailand, Malaysia, Vietnam and the Philippines are showing demand growth. On the other hand, Australia, New Zealand, Taiwan, South Korea, and Singapore show flat growth. In order to address this, Bridgestone Asia Pacific will be providing a better product line-up to satisfy our customers’ needs. In the future, we also intend to enhance our brand strategy across the entire Asia Pacific region.
PRA: What are the latest developments on the Para rubber tree, following Bridgestone’s success in decoding the Hevea Brasiliensis genome in 2012 and what is the progress of the dandelion-based rubber tyre? Sato: We will need to continue on our R&D in the Para rubber tree and accumulate our know-how and technology having decoded genome data at first. We are now working on the development of the DNA marker that can detect “prior tree”. However, it will still take time to establish the DNA marker technology. As for dandelion rubber tyres, the project has just started and we are currently still in an early stage. In 2014, PENRA (The Program of Excellence in Natural Rubber Alternatives) will be testing a tyre made from Russian dandelion to identify its potential as a material for producing tyres in terms of 9 M AY 2 0 1 3
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