Asian Tire Market Dynamics: The Background and Impact Behind Goodyear’s Plant Closures

　　Bridgestone Tire Company has announced the closure of its factory in Malaysia, a decision attributed to the factory's continuous losses over the past six years. The factory has been operating at a deficit since 2017, and the shutdown process will commence on June 30th, with a planned completion date of December 31st. Bridgestone operates a total of 10 factories in Asia, including 3 in China, 2 in India, and 1 each in Indonesia, Japan, Thailand, and Vietnam. This move will result in a reduction of Bridgestone's production capacity in Asia.

　　Despite the closure of the Malaysian factory, the Southeast Asian tire market is not stagnant. Cambodia and Indonesia continue to attract new tire investments, although Thailand and Vietnam are affected by the US anti-dumping investigations, leading to some tire companies suspending or delaying investments in these regions.

　　The uncertain global economic environment poses risks to tire companies' overseas investments. Thailand and Vietnam are under scrutiny due to anti-dumping issues, Sri Lanka faces an economic crisis due to high inflation rates, and India is affected by the Red Sea crisis, leading to unreliable transportation cycles. While overseas investments hold the promise of higher profits, unfamiliar environments also entail greater risks.

　　Overall, Bridgestone's decision to close the loss-making factory is a strategic adjustment to address the high costs and inflationary pressures in the current tire industry. In the future, Bridgestone may need to strike a balance between global expansion and risk management to achieve long-term growth.