Tyre company Bridgestone says it has entered into an agreement to sell its group company engaged in manufacturing and selling carbon black, Bridgestone Carbon Black Thailand, to Tokai Carbon Co. and Thai Tokai Carbon Product Co. Terms were not disclosed.
The transaction is part of business restructuring and rebuilding in Bridgestone’s MidTerm Business Plan. The impact of the transaction on the consolidated financial forecast for the current fiscal year is minimal, it adds.
Bridgestone said it will continue to develop and produce strategic carbon black in-house in areas that are directly linked to its core competence – material technologies, or mastering rubber – and where proprietary knowledge and technologies are essential.
In its premium tire business, Bridgestone is aiming to improve productivity and creativity across the entire value chain, from material and tire development, raw material procurement and production to logistics and sales, with a focus on enhancing its “Dan-Totsu products.” The sale of BSCB is part of these strategic initiatives.
Bridgestone also adds it is rebuilding its in-house carbon black business in areas where it can leverage collaboration with global partners such as Tokai Carbon that has specialised knowledge, networks, and resources.
In addition, Bridgestone is also engaged with Tokai Carbon in a joint project to produce carbon black from used tyres in the recycling business. With this business transfer, Bridgestone aims to respond to changes in the business environment and strengthen its competitiveness over the mid-to-long term by leveraging Tokai Carbon’s supply system, technologies, and extensive knowledge related to carbon black.