Bridgestone, has announced a massive investment plan of 800 billion yen (approximately £5.38 billion) over the next three years.
This investment, part of their new medium-term business strategy set to be unveiled in March, signals a bold acceleration in the development of specialty tyres for electric vehicles (EVs) and mining equipment, along with advanced decarbonisation technologies.
Bridgestone's investment marks a substantial increase from its expenditure over the past three years, which is believed to be around 570 billion yen. The primary focus of this new investment is the development and production of high-performance tyres, catering to the rapidly growing demand from the EV market.
Electric vehicles, known for their substantial strain on tyres due to rapid acceleration and additional weight from heavy batteries, represent a significant area of growth for Bridgestone. The company plans to expand its heavy-duty tyre lineup, including those for EVs, to about 50 products by December 2026. Some of these tyres are already used in EVs manufactured by Toyota Motor and other companies.
Additionally, Bridgestone aims to strengthen its position in the mining equipment tyre market, where it is already a global leader. The focus will be on developing tyres that are more resistant to wear, thereby enhancing their business prospects in this highly profitable sector.
Faced with increasing competition from Chinese and South Korean manufacturers in commodity-grade tyres, Bridgestone is strategically shifting towards the high-end market. This involves concentrating on the development and manufacturing of premium products at its facilities in the U.S., Europe, and Asia, instead of engaging in a price war.
Bridgestone CEO Shuichi Ishibashi emphasized the company's commitment to innovation and adding value while lowering tyre prices. Part of the investment will go towards creating new technologies and launching unique products. Additionally, developing carbon-neutral technology is a top priority. Bridgestone plans to invest in sustainable materials and explore partnerships with digital startups, as well as acquisitions to enhance its competitive edge in the market.
This investment signals a significant shift in Bridgestone's strategy, focusing on specialised, high-performance products in the rapidly evolving automotive industry. With a clear emphasis on innovation and sustainability, Bridgestone is positioning itself to meet the challenges and opportunities of the future automotive market.
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