Bridgestone Plans to Sell Carbon Black Business In Mexico Territory
Bridgestone Sells Carbon Black Operations to Focus on Strategic Areas
In a move to restructure its carbon black business, Bridgestone Corporation has announced the sale of its operations in Mexico and Thailand to Cabot Corporation and Japan's Tokai Carbon Co., respectively. The deal is expected to close within three to six months, pending regulatory approval in Mexico.
The Japanese-based Asahi Carbon Co., based in Niigata, will be Bridgestone's sole remaining carbon black arm. Asahi Carbon will continue to develop and produce carbon black for premium and racing tires for Bridgestone. This strategic focus on high-value segments aligns with Bridgestone's Mid-Term Business Plan (2024–2026) to adapt to market changes and improve productivity and innovation across the value chain with a sustainable supply chain.
Bridgestone plans to sell Mexico Carbon Manufacturing SA de CV to Cabot Corp. for approximately 70 million dollars. This is a separate sale from the one in Mexico. The impact of these sales on Bridgestone's financial forecast for this year remains minimal, according to the company.
The sale does not specify the exact dates for these sales or provide details about Bridgestone's future plans for its carbon black business beyond Asahi Carbon Co. in Japan. The company aims to leverage partnerships with global experts like Cabot to strengthen competitiveness while maintaining proprietary control over critical material technologies relevant to its premium products.
It's worth noting that Cabot Corp. is a U.S.-based company, while Asahi Carbon Co. and Tokai Carbon Co. are Japanese-based companies. The sale of Bridgestone's carbon black operations in Mexico and Thailand does not affect its operations with Asahi Carbon Co. in Japan or the expected closing timeline of these sales.
This restructuring of Bridgestone's carbon black business leaves it with only one carbon black operation, Asahi Carbon Co. in Japan. The company believes this approach will help it maintain its competitive edge in the premium tire market while ensuring a sustainable and innovative supply chain.
In light of the restructuring, Bridgestone will focus on high-value segments within the tire industry, aligning with its Mid-Term Business Plan (2024–2026). The company anticipates enhancing its competitive edge in the premium tire market by maintaining a strategic partnership with global experts like Cabot Corp. in the finance sector. Furthermore, Bridgestone aims to ensure a sustainable and innovative supply chain in the energy sector by managing critical material technologies relevant to its premium products.
