News - 2021

Tokyo (December 10, 2021) - Bridgestone Corporation (Bridgestone) announced today that it will transfer its anti-vibration rubber business to Anhui Zhongding Holding (Group) Co., Ltd. (AZ). The process to transfer the business to AZ will be that; Bridgestone will establish a wholly owned subsidiary company (the new company) which will succeed Bridgestone's anti-vibration business. Bridgestone will transfer all ownership of Bridgestone Group's anti-vibration rubber business to the new company, and then, will sell all shares of stock of the new company to AZ. This transaction is expected to close by the end of July 2022, subject to regulatory approvals and other customary closing conditions.

Bridgestone is restructuring the portfolio of its diversified products business to sharply focus on areas where it can leverage its core competencies. This is part of the overall reinforcement of portfolio management in the Mid Term Business Plan (2021-2023), announced on February 16, 2021. The Mid Term Business Plan (2021-2023) aims to rebuild earning power through expense and cost structure reformation and enforcing premium business strategy to allow the company to enhance strategic growth investment. By executing these strategies, Bridgestone is transforming to a "strong" Bridgestone capable of adapting to the changing business environment.

Anti-vibration rubber business is a part of the chemical and industrial products business which represents about half^*1 of the sales of the Bridgestone Group's diversified products business. The Group has both taken up and withdrawn from various diversified chemical and industrial products businesses throughout its history, responding to changes in social needs and the business environment. Without exception, Bridgestone considered and evaluated anti-vibration rubber business thoroughly and comprehensively, including the pathway to make sustainable growth for both business and employees, potential to leverage Bridgestone's core competencies, and profitability toward the future, before the decision was made. As a result, Bridgestone has made the decision that it is the best for the business to make grow further, continuing to provide social and customer value while maintaining competitiveness under AZ, which has anti-vibration rubber business as its core business. Also, Bridgestone considers that the employees can leverage their careers and skills for their growth through this new opportunity.

All employees associated with anti-rubber vibration business in the Group will work as members of AZ through the transaction. Until the day when the transfer is completed, the Group will take respectful and appropriate actions to them so that they can work with positiveness and security under the new environment. The Group is also working closely with its customers, suppliers, and local communities to minimize the impact as much as possible.

*1 2020 Actual sales revenue basis

The overview of anti-vibration rubber business is as follows.
<Consolidated sales revenue on global basis>
Approximately 54.4 billion yen (actual 2020)

<Overview of production and R&D footprints>

*2 As of November 30, 2021

*3 Only Anti-vibration rubber business will be transferred.

*4 Includes 158 employees in Bridgestone's Iwata Plant who will be transferred to Bridgestone Elastech Co., Ltd. in 2022.

*5 Invest Ratio of Bridgestone Group : 66.7%

*6 Invest Ratio of Bridgestone Group : 80.0%

The Bridgestone Group will reinforce its portfolio management in line with the changing business environment, to evolve to a sustainable solutions company which aims to continuously provide social value and customer value.

For more information on the Bridgestone Group's Mid Term Business Plan (2021-2023), click here.

<Overview of AZ>

<For reference: Progress of business portfolio / manufacturing footprints restructuring>
*Business portfolio restructuring

*Manufacturing footprints restructuring