Bridgestone Implements Exit Strategy for China's Truck & Bus Tire Industry

Bridgestone Corporation has officially announced its decision to terminate all production and sales of commercial tires in China by the first half of 2024. This strategic move aligns with Bridgestone's mid-term business plan for the years 2024 to 2026, with a primary objective of rebuilding earning power and redirecting strategic resources to focus on the premium passenger car tire market.

The comprehensive withdrawal from the commercial tire sector in the Chinese market will involve the cessation of truck and bus tire (TBR) production at Bridgestone (China) Investment Co. Ltd. in Shanghai. The company intends to exit the commercial tire business entirely in China, signalling a significant shift in its operational focus.

As part of this withdrawal, Bridgestone has successfully completed the previously announced closure of its TBR tire plant in Shenyang, China, on January 26. The Shenyang facility had been operational since 1996, employing 657 people and producing approximately 4,300 TBR tires per day. The closure aligns with Bridgestone's strategic realignment to streamline its operations and enhance overall business efficiency.

This decision to exit the Chinese TBR market follows earlier initiatives by Bridgestone to enhance the profitability of its commercial tire business. In September 2023, the Japanese company announced the discontinuation of the TBR original equipment (OE) business in China by the end of the same year. This move was prompted by a significant decline in the production and sales of truck and bus OE tires in the country.

Despite internal efforts to optimize production capacity and reduce costs, Bridgestone faced challenges in improving the situation within the Chinese TBR market. The decision to discontinue the TBR OE business was a strategic response to the evolving market conditions and the company's commitment to maintaining financial sustainability.

This recent move to exit the commercial tire sector in China also follows the closure of another TBR production facility in Huizhou, China, in late 2021. The Huizhou plant, which employed 800 people, had the capacity to produce 4,400 units of tires per day. Bridgestone's decision to close this facility was part of its ongoing efforts to optimize its production network and align its operations with evolving market demands.

Bridgestone's strategic decision to end all production and sales of commercial tires in China signifies a broader realignment of its business focus. The move reflects the company's commitment to adapting to changing market dynamics, enhancing profitability, and redirecting resources to areas with strategic growth potential, particularly in the premium passenger car tire market. Bridgestone remains dedicated to strategic decision-making to ensure its continued success and resilience in the dynamic global tire industry.