About Bridgestone Corporation:
Bridgestone is a global leader in tires and rubber building on its expertise to provide solutions for safe and sustainable mobility. Headquartered in Tokyo, the company employs approximately 140,000 people globally and conducts business in more than 150 countries and territories worldwide. Bridgestone offers a diverse product portfolio of premium tires and advanced solutions backed by innovative technologies, improving the way people around the world move, live, work and play.
News - 2021
2021/12/10
Tokyo (December 10, 2021) - Bridgestone Corporation (Bridgestone) announced today that it will transfer its chemical products solutions business to Endeavour United II Investment Business Limited Partnership (EU Investment Partnership)*1.
The process to transfer the business to EU Investment Partnership will be that; Bridgestone will establish a wholly owned subsidiary company (the new company) which will succeed Bridgestone's chemical products solutions business*2. Bridgestone will transfer all ownership of Bridgestone Group's chemical products solutions business to the new company, and then, will sell all shares of stock of the new company to EU Investment Partnership. This transaction is expected to close by the end of August 2022*3, subject to regulatory approvals and other customary closing conditions.
*1 A fund under management of Endeavour United Co., Ltd. (EU)
*2 Chemical products solutions business consists of automotive seat pad business, advanced chemical products business, and precision components for office equipment business.
*3 Bridgestone will sell all stocks of Bridgestone Precision Molding Philippines, Inc. (BPMP) which is a manufacturing company of precision components for office equipment, directly to the new company at a later date, so the expected closure date of the transaction does not include that of BPMP.
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.
Chemical products solutions business is a part of the chemical and industrial products business which represents about half*4 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 chemical products solutions 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, in prior to the decision. As a result, Bridgestone has made the decision that it is the best for the business to grow further, continuing to provide social and customer value while maintaining the competitiveness under EU, which has various experience to revive many companies mainly in manufacturing business area. Also, Bridgestone expects that the employees can leverage their careers and skills for their growth through this new opportunity.
All employees associated with chemical products solutions business in the Group will work as members of EU 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.
*4 Actual 2020 sales revenue basis
The overview of chemical products solutions business is as follows.
<Consolidated sales revenue on global basis>
Approximately 55.7 billion yen (actual 2020)
<Overview of the companies related with chemical products solutions business and their main facilities>
Company | Facilities | Location | No. of Employees*5 |
Operations |
Bridgestone Corporation*6 | Head office | Chuo-ku, Tokyo | 207 | Head office |
Chemical & Industrial Products Technical Center |
Yokohama, Kanagawa | R&D | ||
Bridgestone Chemitech Co., Ltd. | Head Office Nabari | Nabari, Mie | 567 | Manufacturing automotive seat pads, advanced chemical products, and precision components for office equipment |
Fujinomiya | Fujinomiya, Shizuoka | |||
Hofu | Hofu, Yamaguchi | |||
Ageo*7 | Ageo, Saitama | |||
Bridgestone Diversified Chemical Products Co., Ltd. | Head office | Chuo-ku, Tokyo | 739 | Sales of advanced chemical products |
Nagoya | Komaki, Aichi | |||
Osaka | Osaka | |||
Hiroshima | Hiroshima | |||
Kurume | Kurume, Fukuoka | |||
Kita-Kanto | Honjo, Saitama | Manufacturing advanced chemical products | ||
Totsuka | Yokohama, Kanagawa | |||
Komaki | Komaki, Aichi | |||
Mie | Iga, Mie | |||
Yoshida | Akitakata, Hiroshima | |||
Tosu | Tosu, Saga | |||
Shikoku*8 | Kita, Kagawa | |||
Gifu*9 | Anpachi, Gifu | |||
Gotemba*10 | Gotemba, Shizuoka | |||
Bridgestone APM Company*6 | Upper Sandusky | Upper Sandusky, Ohio | 503 | Manufacturing and sales of automotive seat pads |
Dickson | Dickson, Tennessee | |||
Sanborn | Niagara, New York | |||
Bridgestone NCR Co., Ltd.*6*11 | Rayong | Rayong, Thailand | 106 | Manufacturing and sales of automotive seat pads |
Bridgestone Precision Molding Philippines, Inc.*12 | Cavite | Suburb of Manilla, Philippines | 807 | Manufacturing and sales of precision components for office equipment |
Bridgestone Chemical Products Malaysia Sdn. Bhd. | Shah Alam | Selangor, Malaysia | 97 | Manufacturing advanced chemical products |
Bridgestone Electro-Materials (Hong Kong) Ltd. | Hong Kong | Hong Kong, China | 10 | Sales of precision components for office equipment |
Guangzhou Bridgestone Chemical Products Co., Ltd.*13 | Guangzhou | Guangdong Province, China | 378 | Manufacturing and sales of automotive seat pads |
Bridgestone (Kaiping) Diversified Products Co., Ltd. | Kaiping | Kaiping, Guangdong Province, China | 525 | Manufacturing precision components for office equipment and advanced chemical products |
Shenzhen | Shenzhen, Guangdong Province, China | Sales of advanced chemical products | ||
Bridgestone Wuhan Chemical Products Co., Ltd. | Wuhan | Wuhan, Hubei Province, China | 99 | Manufacturing automotive seat pads |
*5 As of November 30, 2021
*6 Only chemical products solutions business will be transferred.
*7 Scheduled to be closed in 4th quarter of 2023
*8 Scheduled to be closed in 3rd quarter of 2022
*9 Scheduled to be closed in 1st quarter of 2023
*10 Scheduled to be closed in 2nd quarter of 2023
*11 Invest Ratio of Bridgestone Group : 80.0%
*12 Bridgestone plans to transfer all shares of stocks directly to the new company separately in the subsequent day
*13 Invest Ratio of Bridgestone Group : 52.0%
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 EU>
1.Company name | : Endeavour United Co., Ltd |
2.Headquarter | : 6F Marunouchi 2-chome Building, 2-5-1 Marunouchi Chiyoda-ku, Tokyo, Japan |
3.Representative | : Tomohiko Mimura |
4.Number of Employees | : 48 (As of December 10, 2021) |
5.Type of Business | : Management of Investment Fund |
<For reference: Progress of business portfolio / manufacturing footprints restructuring>
*Business portfolio restructuring
*Manufacturing footprints restructuring