Bridgestone Firestone to keep tech center in Akron, building new facility

7/29/2008

The world's largest tire maker is keeping its sizable presence in Akron.

Bridgestone Americas this afternoon said it wants to build a state-of-the-art technical center in Akron on property next to its existing research center off South Main Street.

That means about 600 well-paying jobs will be staying in Akron instead of going south to Tennessee near the company's North American headquarters in Nashville.

The announcement this afternoon to accept Ohio's estimated $68 million economic development package was made during Bridgestone Firestone's 20th anniversary celebration of Japan-based Bridgestone Corp. buying Akron's Firestone Tire & Rubber Co. The corporate marriage evolved into the largest global tire maker.

As a result, what was initially billed as a party looking back 20 years instead became all about the future.

Akron and Murfreesboro, Tenn., southeast of Nashville, were the two finalists for a new Bridgestone Firestone technical center.

The current technical center has been called too outdated and too large for the company's needs. The center is housed in a former 1911-era tire factory building that had also served as Firestone's corporate headquarters. Bridgestone Firestone said it needs a state-of-the-art facility to attract and retain employees.

An Akron-based company team had been working on whether to recommend either the center remain here in Northeast Ohio or move to Tennessee. The ultimate decision will be made by North American corporate headquarters and the company's board of directors in Japan.

A state agency in late June said it will give Bridgestone Firestone an $18 million tax break for keeping its technical center in Akron.

The Ohio Tax Credit Authority proposal allows Bridgestone Firestone to pay just 25 percent of its state commercial activity tax bills for 15 years. The company then would be required to retain operations in Akron for at least 18 years.

The estimated $68 million economic-development package was put together by state, Summit County and city officials. The state has estimated the price tag for the new facility to be $100 million.

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