Concerns over shortages of synthetic rubber and polypropylene are growing as major Japanese automakers are set to increase their production between October 2011 and March 2012, the Nikkei reported Monday.
Japanese tire maker Bridgestone has notified automakers that orders for passenger car tires will likely exceed its domestic output capacity, the Nikkei said. The company is expected to face a shortage of an estimated 500,000 tires, or roughly 5% of orders received, this year.
Bridgestone's seven domestic plants making passenger car tires are operating around the clock and have no room to raise output. Procuring tires from plants overseas appears to be difficult due to strong demand there, the Nikkei said.
Japan Polypropylene is having trouble keeping up with demand for PP. Inventories are running low at its 640,000 mt/year PP plant in Kashima, which shut down for about two months following the March 11 earthquake. In addition, regular maintenance is scheduled at the plant from the end of this month through mid-October, the Japan's leading financial daily said.
PP is a main feedstock to produce autoparts and bumpers.
Toyota Motor and seven other major manufacturers of passenger cars project a 2% year-on-year increase in global output in the six months to end-March 2012, with major hikes planned in Japan.
