Bridgestone selling Thai carbon black business to Tokai Carbon

Tokyo – Bridgestone Corp. has signed an agreement to sell its Thai carbon black manufacturing and sales subsidiary to Tokai Carbon Co., Ltd. and Thai Tokai Carbon Product Co., Ltd.

The deal covers Bridgestone Carbon Black (Thailand) Co., Ltd. (BSCB), which is located in Rayong, Thailand, employs around 140 people, and has been operating since 2001, the Japanese group said 7 July.

As previously reported by ERJ, the facility has a nameplate capacity to produce 40 kilotonnes per annum of carbon black.

Bridgestone described the move as part of ongoing efforts to adapt to a “rapidly changing business environment” by “turning change into opportunity” and strengthening its global business foundation to accelerate “growth with quality.”

“This transfer is part of our effort to reinforce ‘Dan-Totsu (Best-in-Class) products’ as the core of our premium tire business," said the group.

Bridgestone said it is restructuring its in-house carbon black business and collaborating with global partners such as Tokai that have “specialised knowledge, networks, and resources.”

The group 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.”

The two Japanese partners are also working together on a recycling initiative to produce carbon black from end-of-life tires and other materials. (ERJ report)

Bridgestone stressed that it will continue to develop and produce strategic carbon black in-house in areas that are directly linked to its "core competence".

These include materials and rubber technologies, as well as areas where "proprietary knowledge and technologies are essential."

Such areas include premium tires, motorsports tires, and sustainability.

These operations will be carried out through Asahi Carbon, a Bridgestone company in Japan.

"By maintaining in-house development and production of strategic carbon black, Bridgestone will ensure alignment with its business and product strategies," said the group statement. 

Through these efforts, the group aims to "further enhance its competitive advantage and accelerate value creation."

The transfer is part of Bridgestone’s business restructuring and reorganisation initiatives under its 2024–2026 mid-term business plan (stage 2).

Bridgestone said the impact of the deal on its consolidated earnings forecast for the current fiscal year is expected to be minor.