Bridgestone to sell anti-vibration rubber business to Chinese manufacturer

Tokyo – Bridgestone Corp. is divesting another key non-tire business as part of its ongoing portfolio restructuring.

The Japanese group is transferring its anti-vibration rubber business to Chinese automotive components manufacturer Anhui Zhongding Holding, said Bridgestone in a statement 10 Dec.

As part of the agreement, Bridgestone will establish a wholly-owned subsidiary company and transfer all its ownership of the business to the new company. It will then sell all shares of the new company to Anhui Zhongding. 

The transaction, the financial details of which were not disclosed, is expected to close by the end of July 2022, subject to regulatory approvals and customary closing conditions.

Part of Bridgestone’s diversified products unit, the to-be-divested business reported sales of Yen54.4 billion (€424 million) last year. 

Bridgestone declined to give further details on the overall sales of its diversified products division in 2020.

On further consolidation moves, the company said in a written statement to ERJ that it had have not decided anything “as of now.”

“We are always considering and evaluating all the businesses from multiple point of views before any decision, and this is not limited to the diversified products business,” a company spokesman said.

The divestment is the latest a series of restructuring moves by Bridgestone which are aimed at rebuilding earning power through focusing on ‘areas where it can leverage its core competencies.’ 

Headquartered in Tokyo, the business employs nearly 3,850 people and operates eight manufacturing bases in Japan, China, the US, Thailand and India. 

Bridgestone said it considered and evaluated the anti-vibration rubber business “thoroughly and comprehensively” before making the divestment decision.

The move, it added, is “best for the business” to grow further and maintain competitiveness.

All the employees will be transferred to Anhui Zhongding.

Headquartered in Ningguo City, Anhui Province, China, Anhui Zhongding is a manufacturer of automotive parts and employs 22,000 people.

The Chinese group's product portfolio includes sealing products, anti-vibration systems, fluid management solutions and systems for new-energy vehicles.