Sailun buys Bridgestone's truck tire plant in China

The Bridgestone Corporation, which announced in February 2024 that it would be withdrawing from the Chinese market for truck and bus tires and closing its tire production plant in Shenyang (Liaoning Province), has reported that all shares of the enterprise will be acquired by Sailun Tire.

It is reported that Bridgestone (Shenyang) Tire (BSSY) had been experiencing deteriorating financial results in recent years, with net losses increasing from $3.6 million to $66.9 million between 2022 and 2024. Sailun will acquire all shares of BSSY, with the deal valued at $37 million.

According to Sailun, the deal aims to enable the company to more effectively meet demand in both domestic and international markets, while also increasing its overall competitiveness. Furthermore, the change in management at BSSY will continue, and the new owner plans to utilize all acquired assets, including land, production facilities, and equipment, with expectations of increasing the plant's capacity at a rapid pace.

Industry analysts note that with the purchase of the plant, Sailun gains the opportunity for rapid expansion of its capacity and supply in Northeast and Northern China, as well as strengthening its position domestically and abroad.

The Shenyang plant was opened in 1996. As of the end of January 2024, the number of employees was 657, and the enterprise was capable of producing around 4,300 radial truck and bus tires per day.

Photo: ERJ