For tyre manufacturing giant Bridgestone, building an effective corporate social responsibility (CSR) agenda is as important as nurturing a healthy balance sheet. And after capturing a significant global market share during its more than 80 years of operation, the Japanese firm has set its sights on a bigger mission in the Gulf region.
Since January, the company has been touring countries across the GCC as part of its “Tyre Safety and Eco Station” campaign, a project that seeks to promote road safety measures by educating motorists on tyre air pressure and tread wear, among others.
Shoichi Sakuma, President of
Bridgestone Middle East and Africa, says the initiative is a timely response to a pressing issue facing countries in the Gulf region.
“The Eastern Mediterranean region, which includes the GCC, has the highest rate of road deaths in the world,” says Sakuma, quoting statistics from a World Health Organization (WHO) Global Report on Road Safety released in 2009.
According to the study, traffic fatality rate in high-income countries in the Eastern Mediterranean region had been recorded at 28.5 per 100,000 population, significantly higher than the global average of 19.
In the GCC, the UAE registered the highest average road death rate of 37 per 100,000 people, followed by Saudi Arabia with 29, Qatar with 24, Oman with 21, Kuwait with 17 and Bahrain with 12.
The study mentioned that most of the road deaths involved drivers and passengers in four-wheeled vehicles with rates ranging between 25 to 44 per cent. Pedestrians likewise account for double-digit percentage of regional deaths resulting from traffic incidents.
Sakuma said the usual causes of road accidents are high-speed driving, utter disregard for traffic rules and in some cases, tyre failure.
“Tyre safety is vital in ensuring the safety of drivers and passengers, and these is where the innovation of tyre companies comes in. Companies need to promote safety, both through product development and community activity,” he said.
With this corporate social objective in mind, Sakuma said the industry has adopted run-flat technology (RFT) as an advanced safety measure for tyres.
Through this technology, tyres can continue to function even if all tyre pressure has been lost, enabling drivers to safety drive to a garage for assistance. According to some online resources, tyres with RFT can continue to drive up to 150 kilometres at a a speed of up to 80 km/hour without significant loss in vehicle stability.
Double-digit market share globally, regionally
Sakuma said Bridgestone currently enjoys a global market share of above 16 per cent, sharing the industry limelight with French tyre maker Michelin (15.5 per cent) and US-based Goodyear (12.4 per cent). In the Middle East and Africa, the brand accounts for a slightly larger slice of the pie at 20 per cent.
Without giving the exact numbers, the Bridgestone executive added that sales figures in the first quarter of 2011 posted double-digit growth compared with the same period last year – a possible indication of gradual economic recovery experienced in the region and the rest of the world.
“The first quarter of 2010 started very slow [because of the global financial crisis], and the market started to pick up towards the end of the year. This trend continued until the first quarter of 2011. Sales during Q1 2011 were good in comparison to last year,” he said.
Sakuma added that while they are considered as the leading tyre brand in the world, they do not want to rest on their laurels.
“We’d like to keep our market position. Our target is to exceed demand growth by gaining a larger market share,” he said, adding that in the Middle East and Africa, average annual tyre consumption stands at between four and five per cent.
The company also recently launched in the region its latest eco-friendly tyres called Ecopia, which reportedly improves fuel efficiency by three per cent.
The environmentally designed tyres are made from a combination of silica with a coupling agent that reduces heat generation and energy loss while delivering high levels of safety without compromising braking, the Bridgestone statement said.
No significant impact from Japan earthquake
Asked whether Bridgestone took a massive hit from the twin disaster that hit Japan on March 11, Sakuma said fortunately their manufacturing plant was spared from the devastation.
“Our plants were not affected, but of course there are concerns that impacted productivity not just our own, but other companies as well. For one, power shortage remains a challenge, but overall we did not experience any major backlash from the earthquake,” he said.
Bridgestone does not have any manufacturing facilities in the Middle East, but it operates around 24 factories in Japan.
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