Bridgestone seeks global No 1 position with huge CapEx programme

Tokyo -- Bridgestone has written a new management plan for the period 2006 - 2008. The plan calls for the company "to assert undisputed leadership in the global tire industry."

Specifically, the plan says Bridgestone aims for sales of Yen 3 trillion (Euro 21 600 million ) in 2008, rising to Yen 3.2 trillion in 2010. In addition, the company aims for a return on assets of 6 percent in 2008.

Press reports from Tokyo, confirmed by a Bridgestone spokesman, said the company also is aiming to continue its huge capital investment programme, with a CapEx budget of Yen 200 000 million (Euro 1450 million) in each of the three years covered by the plan. In 2004, Bridgestone committed Euro1700 million to capital expenditure projects, which represented over 40 percent the total Capex budget of global tyre industry.

For comparison, Michelin committed only Euro 500 million last year, and Goodyear trailed the big three with less than Euro 120 million in capital investment projects.