Bridgestone has announced in its Mid-Term Business Plan that it will reform the company’s expense and cost structure for all regions and business areas.
Through the reformation, the company aims to enhance its business portfolio management in terms of its ability to adapt to changes in the business environment. By rebuilding the expense and cost structure, Bridgestone hopes to enhance strategic growth investments alongside growing exploratory business.
As part of the plan, Bridgestone will sell all of its shares in Bridgestone (Huizhou) Synthetic Rubber Co (BSRC), a subsidiary based in China that manufactures synthetic rubber for passenger car tires, to LCY Chemical Corporation. Bridgestone believes that by maximizing synergy with LCY, the business can continue to grow.
Bridgestone says it has enhanced vertical integration that enables the company to conduct tire R&D and internal manufacturing of raw materials alongside production, sales and services as it seeks to achieve global optimization of its tire business.
With global business being volatile at present, the tire manufacturer wants to restructure its business portfolio so that it can act swiftly if the environment changes, to maintain global optimization of the business. Restructuring was investigated prior to the Mid-Term Business Plan to ensure that Bridgestone and its partners can achieve sustainable growth.