Bekaert has finalized its €60 million acquisition of two Bridgestone tire reinforcement plants in China and Thailand, a move that adds approximately €80 million in annual sales and expands its manufacturing footprint in Asia.
"The completion of the acquisition further strengthens the position of Bekaert in the tire cord market, expands the global manufacturing footprint, and deepens our long-standing partnership with Bridgestone," Curd Vandekerckhove, CEO of Bekaert's Rubber Reinforcement division, said in a statement.
The transaction, funded from available cash balances, includes the Bridgestone (Shenyang) Steel Cord Co., Ltd. in China and Bridgestone Metalpha (Thailand) Co. Ltd. in Thailand. As part of the deal, a long-term supply agreement was established, ensuring Bekaert will continue to provide high-quality tire reinforcement products to Bridgestone, solidifying their strategic supplier relationship. The premium paid over Bridgestone's undisturbed price was not disclosed.
For Bekaert, the acquisition cements its leadership in the Asian tire cord market while providing guaranteed sales through the supply contract. For Bridgestone, the divestiture allows the company to streamline its operations and focus on other strategic priorities. The deal's completion follows the receipt of all necessary regulatory approvals.
The move reflects a broader trend of strategic investment in Thailand's manufacturing sector. It follows other major industrial expansions in the country, such as NatureWorks' recent opening of a 75,000-metric-ton-per-year biopolymer facility, highlighting the region's growing importance in global supply chains. Bekaert's immediate focus will be on ensuring a smooth transition and operational continuity for the newly acquired plant teams.
This article is for informational purposes only and does not constitute investment advice.
