Bridgestone to expand premium tire business

TOKYO—Bridgestone Corp. is wrapping up its mid-term business plan (2021-2023) with a $720 million investment program in the expansion of its premium tire business.

The investment is part of Bridgestone's strategy to enhance its business performance and will see the group more than doubling its Capex this year, compared to 2021 and 2022 combined.

Over the three-year period, Bridgestone said it will invest a total of $2 billion in capacity expansions to support the strategy and to finish the year with "return to a strong Bridgestone."

In the passenger car segment, the Tokyo-based group said it will strengthen manufacturing structure for premium tires across 20 sites globally.

The program will include investing in the replacement of manufacturing equipment and increasing capacity for high-rim diameter tires.

To achieve this, Bridgestone said it is carrying out capacity expansions at facilities in Brazil, Costa Rica and Japan.

In the truck and bus tire segment, the Tokyo-based group aims to strengthen its manufacturing structure for new and retreaded tires.

For new tires, the group is expanding its production facility in Warren county, Tennessee, in response to a growth in market share in the country.

Furthermore, Bridgestone is adding capacity in Chonburi, Thailand, to reinforce its global supply sources.

For retread truck and bus tires, Bridgestone said it is expanding production in the U.S. and Japan.

In the off-road segment, the group will invest in "building a premium tire business" and will reinforce production of tires at its facilities in Shimonoseki and Kitakyushu in Japan.

Furthermore, it will add steel cord capacity at its Saga site in Japan to support the off-road tire expansion.

For the two-wheeler market, Bridgestone will focus on the premium race and sport areas by increasing production at its facility in Nasu, Japan.

By the end of the plan this year, Bridgestone expects to raise sales to $31 billion, from $20 billion reported in 2020.

In terms of profitability, the group expects to report adjusted operating profit of Yen510 billion in 2023, up from Yen207 billion in 2020.

With the conclusion of the mid-term plan, the Tokyo group expects to build "foundations for growth" ahead of its next mid-term plan (2024-2026).