Bridgestone Cuts Its 2009 Capital Expenditure Plan
In 2009, Bridgestone significantly reduced its capital spending by 15 to 30 percent, a move directly linked to the global decline in tire demand that impacted its operations. According to a report by Comprehensive Foreign Power on February 19, the company decided to cut its plant and equipment investment for the year to between 200 billion and 250 billion yen, marking a major reduction from its initial budget.
Nikkei reported on the same day that Bridgestone had unveiled a medium-term business plan in October 2008. Under this plan, the company aimed to spend approximately 290 billion yen annually on capital expenditures over five years, up to 2013. The plan included expanding production capacity for passenger car tires in Thailand and Indonesia by the end of 2010, as well as starting a new facility for bus and truck tires in Poland by the end of 2009. However, these projects could face delays or reductions due to the challenging economic environment.
The drop in global tire demand has had a clear impact on Bridgestone’s core businesses, particularly in supplying both new and replacement automotive tires. While the company remains committed to its long-term strategic goals, it has acknowledged that future spending decisions will depend on market conditions. Specifically, Bridgestone is still hoping to proceed with key investments in strategic areas, such as the construction of a large construction equipment tire factory in Kitakyushu and the expansion of production at the Tokyo Aircraft Tire Factory. These initiatives remain central to its growth strategy despite the current financial constraints.
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