Bridgestone aims to spend €1500 million each year on Capex

Tokyo - Bridgestone's incremental mid-term management plan has been revised with a reported commitment for capital spending up to ¥250 000 million (€1500 million) per year over the next five years. The plan was introduced at a news conference in Tokyo earlier today

The first sentence of the plan reads, "The goal of the Bridgestone Group is to [be] the undisputed world No. 1 tyre and rubber company both in name and reality.

Bridgestone has four key strategies to achieve this:

• To always aim for “the higher level”
• To clarify the long-term strategy and to proceed with the integration and expansion of business domain
• To aim to be a real global corporation, adopting SBU (strategic business units) organisation
• To aim for the optimum management for the entire group, utilizing the Mid-term Management Plan

The company has set itself two key targets for the year 2012. The first is ¥4 million million (€24 000 million) in net sales in 2012, which is a 20 percent increase on the company's current forecast for 2007. The second financial target is a consolidated return on assets of 6 percent.

Newswire reports from publications attending the event said the company has budgeted up to ¥1.25 million million for capital expansion projects over the next five years, which translates to around €1500 million per year. The reports added that said Bridgestone was also considering building a new factory in Russia in addition to the plants it is already building in Mexico, Poland and Hungary

A spokesman for Bridgestone Europe was unable to comment on these reports until he had formal confirmation from Bridgestone in Japan.

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Press release from Bridgestone

Bridgestone aims for 80 percent profit boost in 5 years Reuters (Japan)

Japan's Bridgestone flags up to 1.25 trln yen of investment over next 5 years AFX via Forbes (Japan)

Bridgestone seen planning 11-billion-dollar investment AFP (Japan)