About Bridgestone Corporation:
Bridgestone Corporation, headquartered in Tokyo, is the world’s largest tire and rubber company. In addition to tires for use in a wide variety of applications, it also manufactures a broad range of diversified products, which include industrial rubber and chemical products and sporting goods. Its products are sold in over 150 nations and territories around the world.
News - 2015
Accelerating the global development of Bridgestone's unique business model
Tokyo (October 16, 2015) - Bridgestone Corporation ("Bridgestone") announced today that it will establish in-house companies in its business for mining and agricultural machinery. Rather than simply expanding upon existing product-based businesses, these in-house companies will be established to accelerate the global expansion of Bridgestone's solutions business, which collectively provides multiple product combinations and services as well as IT support.
The Bridgestone Group ("The Group") has adopted "technology & business model innovation" as one of the tasks for its Mid-term Management Plan for 2015 (2015MTP), covering 5 years from 2016 to 2020, and is currently engaging in various initiatives to accomplish this task. The Group's mining and agricultural machinery business offers product combinations that are within of the Group's expertise, such as off-the-road tires for construction and mining vehicles (OR tires) and conveyer belts as well as agricultural tires (AG tires) and rubber tracks. Using these product combinations as the core of its competitive edge, the Group will work to promote a business model that collectively provides services and IT support. The Group will work to resolve the various issues facing customers by providing them with unprecedented new value, while it will establish sustainable and constructive business relationships with customers.
With the establishment of these in-house companies, Bridgestone will streamline in-house functions that oversee its businesses for mining and agricultural machinery, which were previously organized by region and product type. By organizing these functions from the perspective of its customers in such ways as realizing an integrated point of customer contact, Bridgestone will strengthen the global expansion of its solutions business.
Regarding Organizational Structure
The segments of the current Specialty Tire Division, Chemical and Industrial Products Division, and Original Equipment Tire Sales Division that are related to mining and agricultural machinery will be streamlined and organized from the perspective of customers according to function. As of January 1, 2016, Bridgestone will establish an in-house global solutions company for mining and agricultural machinery. This global company will oversee the strategy planning, management, and operating activities of the solution business. The development and production functions will remain organized as they are at this time.
The subsidiaries of the Group that have the business for mining and agricultural machinery will establish a mining solutions company and an agricultural solutions company to function as regional companies*. These companies will plan strategies, oversee management, and carry out operating activities toward end users on a regional level. First, companies related to OR tire operations, which currently run their businesses independently, and companies related to chemical and industrial product operations will adopt a collaborative structure. This structure will target Asia (certain parts), Oceania, and Central and South America, areas that are under direct control of the SBU that oversees specialty tire operations. In addition, Bridgestone will consider establishing a company structure in a similar way for the Americas SBU, Europe SBU, and China and Asia and Oceania SBU going forward.
The name of each company and division is currently tentative.
The Group possesses a combination of unique products, such as tires and chemical and industrial products, reliable IT technologies, and an expansive service network. Through these comprehensive strengths, the Group will continue to contribute to the business operations of customers.
*Some of the regional companies will be spanning several subsidiaries.
About Bridgestone Corporation: