Bridgestone realigns steel cord business

Bridgestone Corporation announced that on 31 January 2010 it entered into a definitive agreement to sell 100 % of the shares of its Italian and Chinese steel cord manufacturing subsidiaries to Belgian-based NV Bekaert SA.

The manufacturing subsidiaries to be sold are Bridgestone Metalpha Italia S.p.A. (BMI) and Bridgestone (Huizhou) Steel Cord Co., Ltd. (BSSH). As part of this transaction, Bridgestone has entered into a long-term tyre cord supply agreement with Bekaert, which will ensure a stable supply of quality cord.

Prior to the announced sale, Bridgestone operated seven steel cord plants in the USA, Italy, Thailand, Huizhou and Shenyang in China, Kuroiso and Saga in Japan.

Bekaert has been a key supplier of steel cord to Bridgestone since many years. In addition to an existing steel cord supply arrangement between the two companies, Bridgestone and Bekaert in the past participated in a joint venture which developed and manufactured steel cord.