Tokyo – Bridgestone Corp has unveiled a 10-year business plan, signalling an increased focus on expanding its ‘solutions’ business and forays into areas outside of tire and rubber-goods manufacture.
To be carried in four stages, the mid-term plan will be aligned with the ongoing Bridgestone 3.0 restructuring programme, which is intended to improve profitably across tire & rubber activities, Bridgestone said 16 Feb.
In the first phase, between 2021-2023, the Japanese group aims to rebuild earnings-power through measures such as cutting fixed and variable costs, and the restructuring of manufacturing footprint within its core tire business.
In addition, Bridgestone will focus more on growth areas within its ‘solutions’ business, including via an expansion of its: tires-as-a-service subscription model; recycling/retreading strategy; and connected, IT-based mobility offerings such as Webfleet telematics.
During the first phase, Bridgestone also plans to ‘explore’ new business fields, such as recycling and soft-robotics – though its statement did not give further details.
Overall, the Japanese group expects to grow sales from Yen2,994 billion (€23 billion) in 2020 to Yen3,300 billion by 2023 – a target that is still about Yen200 million short of its 2019 turnover.
‘Solutions’ activities are expected to contribute 20% of total sales, up from 16% in 2020.
Bridgestone also anticipates a return-to-profit by 2023, estimating that it will generate Yen290 billion in ‘profit attributable to owners of parent’.
For Covid-impacted 2020, Bridgestone reported a net loss of Yen23.3 billion, the first such red numbers from the Japanese group in 70 years.
The second and third phases of the turnaround strategy, to be carried out between 2024-2026 and 2027-2029, are intended to bolster Bridgestone’s earnings-power.
By 2030, the Tokyo-based group aims to have optimised activities within core businesses, fully evolved ‘solutions’ activities into a core business, and commercialised current ‘exploratory’ activities.