Tokyo – Bridgestone Mining Solutions Australia is acquiring off-the-road (OTR) tire management specialist Otraco International Pty Ltd (Otraco) in a move to expand its mining tire solutions business.
The acquisition, from Australia-based Downer EDI Ltd, is valued at AUD79 million (€50 million), and is expected to close by the end of the year, Bridgestone announced 26 April.
Based in Redcliffe, Western Australia, Otraco is operational in Australia, Chile and south Africa, and offers a portfolio of OTR tire management solutions that track tires across the full lifecycle.
These include on-site tire maintenance services and a computerised Otracom platform, which records real-time data from sensors to manage tires and rims.
The move is part of the Japanese group’s mid-term business plan, which calls for investments in the core tire business while also pursuing M&A activities to enhance “sustainable solutions offering.”
“Today we are announcing another significant step in our ongoing solutions journey,” said Masahiro Higashi, global COO and representative executive officer, Bridgestone Corp.
Acquiring Otraco, he said, will help Bridgestone expand its mining solutions business in the key markets of Australia, Chile and South Africa and create growth opportunities with existing mining customers.