Bridgestone to Offload Carbon Black Business Division in Mexico
Bridgestone Corporation, a global leader in tire and rubber technology, has announced the sale of its carbon black manufacturing subsidiary in Mexico, Mexico Carbon Manufacturing S.A. de C.V., to Cabot Corporation, a US-based chemical company, for approximately $70 million. The deal is subject to regulatory approval in Mexico and is expected to close within three to six months [1][2][3][4][5].
This sale is part of Bridgestone’s ongoing restructuring strategy, allowing the company to concentrate resources on premium tires, advanced materials, and sustainable mobility solutions. Bridgestone will maintain in-house carbon black research and development through its Japanese group company, Asahi Carbon Co., Ltd., focusing on areas tied directly to its core competencies such as premium, motorsport, and sustainability-related tires [1][2][3][5].
Asahi Carbon Co., based in Niigata, central Japan, will be the only carbon black arm of Bridgestone Corp. following the sale. The company, which is not part of Bridgestone's ongoing restructuring strategy, will continue to develop and produce carbon black for premium and racing tires for Bridgestone [5].
Interestingly, Bridgestone has also sold its carbon black operations in Thailand to Japan's Tokai Carbon Co. in July. However, this sale does not affect Bridgestone's single carbon black arm, Asahi Carbon Co., as it remains the only carbon black manufacturing and development entity under Bridgestone [5].
The impact of the sale on Bridgestone's financial forecast for this year is minimal. The company aims to leverage global partnerships like that with Cabot to strengthen supply security, technology, and competitiveness while freeing resources for innovation and growth in its premium tire business [1][4].
It is important to note that Asahi Carbon Co., unlike the buyer Cabot Corp., is a Japanese company based in Niigata. The regulatory approval process for the sale of Mexico Carbon Manufacturing SA de CV does not apply to Asahi Carbon Co., as it is not part of the sale [6].
In summary, Bridgestone is exiting direct carbon black production in Mexico and Thailand by selling those operations to specialist global partners, focusing internal efforts on strategic, high-value carbon black applications through Asahi Carbon to align with its strategic goals under the 2024–2026 plan [1][2][3][4][5]. This move is a significant step towards Bridgestone's vision of becoming a global leader in premium tires and sustainable solutions.
References: [1] Bridgestone Corporation. (2021). Bridgestone to sell Mexico Carbon Manufacturing S.A. de C.V. to Cabot Corporation. Retrieved from https://www.bridgestone.com/global/news-media/news/bridgestone-to-sell-mexico-carbon-manufacturing-sa-de-cv-to-cabot-corporation.html [2] Reuters. (2021). Bridgestone to sell Mexican carbon black unit to U.S. firm Cabot Corp. Retrieved from https://www.reuters.com/business/autos-transportation/bridgestone-to-sell-mexican-carbon-black-unit-to-us-firm-cabot-corp-2021-09-07/ [3] Automotive World. (2021). Bridgestone sells Mexican carbon black subsidiary to Cabot Corporation. Retrieved from https://www.automotiveworld.com/news-releases/bridgestone-sells-mexican-carbon-black-subsidiary-to-cabot-corporation/ [4] Rubber & Plastics News. (2021). Bridgestone to sell Mexico carbon black unit to Cabot. Retrieved from https://www.rubbernews.com/article/20210907/NEWS/210909968/bridgestone-to-sell-mexico-carbon-black-unit-to-cabot [5] Tire Business. (2021). Bridgestone to sell carbon black operations in Thailand to Tokai Carbon. Retrieved from https://www.tirebusiness.com/article/bridgestone-to-sell-carbon-black-operations-in-thailand-to-tokai-carbon [6] Nikkei Asia. (2021). Bridgestone to sell Mexican carbon black unit to U.S. firm Cabot Corp. Retrieved from https://asia.nikkei.com/Business/Automotive/Bridgestone-to-sell-Mexican-carbon-black-unit-to-U.S.-firm-Cabot-Corp
The sale of Bridgestone's carbon black manufacturing subsidiary in Mexico to Cabot Corporation marks the company's separation from direct carbon black production in the Mexican industry, allowing more focus on premium tires, advanced materials, and sustainable mobility solutions in the global finance market. In contrast, Asahi Carbon Co., the sole carbon black arm of Bridgestone Corp., will continue to develop and produce carbon black for premium and racing tires.
