Vol. 2, Iss. 2   |    May 14, 2008

Letter from the President

In this edition of Firestone Voice, I'm pleased to report some very positive news coming out of Liberia. The Liberian legislature recently ratified our investment agreement, which allows us to continue working in Liberia for at least the next 30 years. And, in addition to running our rubber farm, we have started operating a rubberwood facility, which will add at least 500 jobs in the country. Continue reading for more information on these items.

Since our last e-mail, we launched a blog to provide a space for our thoughts on all things related to Liberia and our operations there. Please visit the blog at firestonenaturalrubber.com/blog/index.htm.

Thank you for your continued interest in our company and its employees.

Dan Adomitis, President
Firestone Natural Rubber Company, LLC

Liberian President Sirleaf Signs Revised Investment Agreement

In late February, we announced that an agreement had been reached on a newly revised investment agreement between the Government of Liberia and Firestone Liberia. In just one month, this mutually beneficial agreement was ratified by both the Liberian Senate and House of Representatives and signed by President Ellen Johnson Sirleaf.

The amended agreement represents an opportunity for a new partnership based on the parties' mutual support for the rehabilitation and enhancement of Liberia's natural rubber industry.

Dr. J. Chris Toe, Minister of Agriculture and the government's lead negotiator, referred to the agreement as "an embodiment of government's goals to ensure that all existing agreements equitably protect Liberian interests and are consistent with principles that attract and sustain foreign investment in Liberia."

Here are some of the key features of the new agreement:

• It provides the stability Firestone needs to continue investments in its rubber operations, which employ almost 7,000 Liberians.  Firestone's investment indirectly generates thousands of other jobs in the Liberian economy.

• It gives Firestone the stability we need to develop and launch our new rubberwood business.

• It moderately increases and stabilizes the income tax rate payable by Firestone, which has been among the country's largest taxpayers for 82 years.

• It establishes new transfer pricing provisions for dry rubber and latex based on international indices, allows the government more flexibility in applying its revenue laws.

• It continues and expands Firestone's involvement in supporting small Liberian rubber farmers, educational programs and social projects.
  

Firestone Liberia Invests in Rubberwood Production

In March, shortly after the Government of Liberia and Firestone concluded negotiations on the investment agreement, we announced our newest major investment in the country: a rubberwood processing operation. The security of an investment agreement through 2041 allowed Firestone to make the significant investment in the facility and equipment to get started.

The air-dried (and soon to be kiln-dried) rubberwood is a value-added, ecologically sustainable product of our existing natural rubber operations. Rubber trees are processed after they reach the end of their lifecycle for producing latex, which is typically around 30 years. The old trees will now be cut down and transported to the rubberwood mill. At the mill, the trees will be cut to size, pressure-treated and dried to the desired moisture content. The resulting product is an environmentally friendly, durable hardwood that is often used in furniture and flooring throughout the world.

After the civil war ended, Firestone started an aggressive replanting effort to rehabilitate our rubber tree farming operations. Replanting up to 5,000 acres a year meant that we have a lot of old trees to clear. While we wait for the new trees to reach maturity we're excited to be developing a new business for Liberia and providing new jobs for at least 500 more Liberians.

Firestone Liberia Constructs New Employee Housing Units, Provides Jobs for Liberian Contractors

Cherry Burphy is one of many Liberians benefiting from Firestone Liberia's ongoing efforts to reconstruct housing units for its employees. Burphy isn't an employee of Firestone Liberia; he is the Construction Manager of the B Zazay Construction Company, a firm that has worked on housing projects in Divisions 27 and 40 of Firestone's farm, and was recently hired for a project in Division 26.

"This new assignment is a welcomed development and will boost our morale as a Liberian-owned construction company," Burphy said recently at the Division 26 construction site, where Firestone Liberia is continuing the construction of new housing facilities for its employees and their dependents. 

Burphy said Firestone Liberia's confidence in Liberian workers has enabled local construction companies like his to provide employment opportunities for young Liberians, who might otherwise be out of work.

Firestone directly employs nearly 7,000 Liberians, but through investments in the country the company indirectly provides jobs for many more. The company's post-war housing renovations have pumped more than $2.5 million into the local Liberian economy.

Firestone Liberia is constructing new housing for its employees as quickly as possible, as many of its housing units were damaged, destroyed or in disrepair as a result of the 14-year civil war. Firestone teachers, health care workers, agricultural and manufacturing employees are now living in the recently reconstructed housing units. To date, Firestone Liberia has completed over 900 new housing units and many more are in progress. For additional interesting "growth statistics" see our new Fact Sheet (PDF).

Faces of Firestone — Joseph Geliah Garwor

Joseph Geliah Garwor likes his job as Superintendent of the Firestone Liberia garage because it keeps him busy, gives him practical experience with many different types of vehicles, and because it allows him to meet people from all walks of life.

As Superintendent, Garwor, 30, coordinates the repair, maintenance and overhaul of all Firestone Liberia vehicles, and oversees garage personnel.

He says he sought a job at Firestone about a year ago because of the company’s hospitality and good treatment of its employees. His job allows him to accomplish his dream of being a professional engineer, as well as work at being a good administrator.

Born in Grand Gedeh County, Garwor attended Vladimir State University in Russia where he received a bachelor’s degree in engineering. He also earned a master’s degree in mechanical engineering in 2006.