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.
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.
Japanese OEMs' July domestic production was down 8.9% year-on-year to 790,325 vehicles, JAMA has reported. The latest month's fall compares to a 14% year-on-year drop in June and a 30.9% fall in May.