BRIDGESTONE CORPORATION Business Report FY2010
|(in millions of JPY)|
|FY2010||FY2009||Rate of change (%)||Factors|
|Current net income||98,913||1,043||938.3||-|
- Unit sales of tires largely increased from the previous year's result, partially due to a recovery in demand in the automotive market.
-In North America, unit sales of passenger vehicle tires and truck and bus tires largely increased from the previous year's result, partially due to a recovery in demand in the automotive market. The company also enjoyed a significant rise in sales of ultra high-performance (UHP) tires and other strategic products.
-Unit sales of passenger vehicle tires and truck and bus tires largely increased from the previous year's result, partially due to a recovery in demand in the automotive market.
Contracts-The Company announced that it has begun supplying Nissan Motor Co., Ltd. with eco-friendly tire ECOPIA for use as original equipment on the Nissan Leaf, an electric car scheduled to go on sale in December 2010. (From a press release on December 3, 2010)
-The Company announced that its Potenza S001 premium tires were chosen by both Ferrari of Italy and Aston Martin of the U.K. for installation on their luxury-type sporty vehicles. The tires will be featured on the Ferrari 458 Italia and the Aston Martin Rapide. (From an article in the Nikkan Jidosha Shimbun on June. 2, 2010)
-The Company announced that it will supply tires as original equipment for the C3 and the DS3 Citroen models to be released this year. (From an article in the Nikkan Jidosha Shimbun on February. 5, 2010)
Restructuring-The Company and Toyo Tire & Rubber Co., Ltd. will reconsider the mutual supply of tires in their comprehensive business alliance agreement, including the target areas. They originally planned to produce tires for each other in the Americas, starting in 2009. In response to the recent drastic change in the market, however, they have decided to seek for the best operation for both companies in tire production. As for procurement of materials, they plan to start with areas in which it is relatively easy to produce effects, for instance, increasing target items. The two companies thus aim to achieve their alliance objectives, that is, improved business operations and synergy-effects creation. (From an article in the Nikkan Jidosha Shimbun on Feb. 23, 2010)
-Bekaert said that it has completed acquisition of two the Company tire cord units - BSSH, Huizhou (Guangdong Province, China) and Bridgestone Metalpha Italia S.p.A. (BMI), Sardinia (Italy) - as announced in February 2010. The long-term supply agreement of tire cord to the Company, which was also then agreed, has come into effect upon closing the transaction. (From a press release on March 31, 2010)
-The Company announced that it will reorganize its tire production operations in Japan. The company will transfer production of 6,200 tires for trucks and buses daily now handled at its Tokyo Plant in Kodaira City, Tokyo to both its Tochigi Plant (Tochigi Prefecture) and Amagi Plant (Amagi, Fukuoka Prefecture). The change is based on the company's strategy to integrate operations by product item. The Tokyo Plant will continue to produce tires for passenger vehicles, light-duty trucks and aircrafts. The Company will start moving its production equipment and employees this month, aiming to complete the transfer during the first half of 2011. (From an article in the Nikkan Jidosha Shimbun on May. 12, 2010)
Award-The Company earned Volvo Premium Supplier Award in June 2010. A total of nine awards were presented for 2009 including Bridgestone's. The Company is the first tire manufacturer to receive the award. (From a press release on August 24, 2010)
|(in millions of JPY)|
Number of R&D Facilities
& South America
R&D Facilities in Japan
|Technical Center||Chuo-ku, Tokyo|
|Technical Center for Diversified Products||Yokohama, Kanagawa|
|Bridgestone Proving Grounds||Nasushiobara, Tochigi|
|Hokkaido Proving Grounds||Shibetsu, Hokkaido|
R&D Facilities Outside Japan
|Thailand||Nong Khae, Ayutthaya|
-Bridgestone Americas Tire Operations, LLC is currently constructing its new Technical Center in Akron, Ohio, U.S. The 100 million USD facility is scheduled to open in early 2012. (From a press release on November 19, 2010)
|(in millions of JPY)|
|Tire business (Consolidated)||159,700||156,800||247,900|
During fiscal year 2011, the Company is planning to invest 230,000 million yen in total, of which 195,000 million yen is allocated for the tire business.
The tire division is focusing its investments activities on building a new plant in India and increasing production capacities at the Non Kaeh facility in Thailand, the Wuxi Plant in China, and the Poznan facility in Poland.
Investment Outside Japan<Europe>
-The Company announced expansion of passenger car tire production capacity in Poland to meet growing demand for run-flat and super high-performance tires in Europe. Bridgestone will invest about 105 million euros in the expansion to start its operation in January 2012. Production capacity is planned to be increased roughly 23 percent to 29,200 tires a day by the end of fiscal 2014 compared with the current level. (From an article in the Nikkan Jidosha Shimbun on April. 8, 2010)
-The Company announced that it will begin making truck and bus radial tires at its existing facility in India. The company is investing 3.3 billion yen to establish a new production line to produce these tires at the Indore Plant (Madhya Pradesh, India) of Bridgestone India Private Limited. The new line is scheduled to begin operations next year, with daily production expected to reach around 400 tires by 2012. Bridgestone decided on the expansion in response to rapidly growing local demand for truck and bus tires. The Indore Plant currently manufactures passenger car and light truck tires. (From an article in the Nikkan Jidosha Shimbun on February. 2, 2010)
-The Company announced that it has signed a memorandum with the government of Maharashtra State, India on the new tire plant to be built there. Bridgestone Vice President and Senior Officer Takashi Urano said at the signing ceremony held in Mumbai, " India will develop into a strong, economic power, most influential in Asia." This second Bridgestone tire plant in India will be constructed in Chakan Industrial Area, near Pune, Maharashtra State, with an investment of approx. 50 billion yen. It will begin passenger car radial tire (PSR) production in January 2013, and truck and bus radial tire (TBR) production in August 2013. By year-end 2020, production capacity is expected to reach approx. 10,000 units per day for PSR and 3,000 units per day for TBR. (From an article in the Nikkan Jidosha Shimbun on April. 30, 2010)
-The Company announced that it will expand production capacity of radial tires for passenger cars and light-duty trucks in Indonesia. The company will invest 4.3 billion yen to increase production capacity to 3,000 tires a day by mid 2012 in an attempt to respond to growing global demand for tires. (From an article in the Nikkan Jidosha Shimbun on May. 17, 2010)
-The Company announced that its subsidiary in Thailand, Thai Bridgestone Co., Ltd., will invest approximately 21.3 billion yen to expand its Nong Khae Plant, and increase daily production capacity of passenger car radial tires (PSR) and light truck radial tires (LTR) by 13,500 units to 50,000 units by the end of 2014. The Nong Khae Plant began production in 1995, supplying PSR and LTR tires to both the domestic market and key overseas markets including Asia, North America and Europe. In January 2008, a project was to increase its daily production capacity by approximately 6,000 units. That project is scheduled to be completed by 2011. However, with global demand expected to continue to grow, the Bridgestone Group determined that further expansion of the plant is necessary to meet market demands. (From a press release on September 10, 2010)
-The Company announced that it will raise its production capacity in Thailand for truck and bus radial tires (TBR). With approx. 16.6 billion yen investment, it will increase daily TBR production capacity by approx. 2,500 units to approx. 10,500 units by the first half of 2014. Based on globally growing TBR demand, the company has decided that larger production capacity should be necessary. Capacity will be expanded at the TBR manufacturing plant in Chonburi of Bridgestone Tire Manufacturing (Thailand) Co., Ltd. The subsidiary started operations in 2004 as an export base for the Americas, Europe and neighboring countries in Asia. At present approx. 1,400 employees manufacture 8,000 tires daily. (From an article in the Nikkan Jidosha Shimbun on December 17, 2010)