Bridgestone Acquires Second Tyre Plant In China

Bridgestone Corporation has acquired control of a Chinese manufacturer who produces radial passenger and commercial tyres from the Republic of Korea’s Kumho Industrial Co. The share purchase agreement between Bridgestone and Kumho was signed on January 31, 2000 in Tokyo, following several months of negotiations, with Bridgestone taking 94,5 per cent Kumho share in Tianjin Kumho Tire Co., Ltd.

Tianjin Kumho was established in 1995 and began producing tyres in 1997. The company has a current production capacity of about 3.5 million tyres a year.

The acquisition also includes Tianjin Kumho’s sales network. The latest purchase by Bridgestone follows their acquisition last July of a controlling stake in Shenyang Santai Tire co., Ltd.

who produce truck and bus radial tyres.The acquisition of these two local production plants is intended to enable Bridgestone to continue their growing presence in the Chinese tyre market..