On July 14, Sailun Group announced that its wholly-owned subsidiary, Sailun (Shenyang) Tire Co., Ltd., plans to purchase 100% of the equity of Bridgestone (Shenyang) Tire Co., Ltd. for RMB 265 million. On the same day, Sailun Shenyang and Bridgestone China signed the Equity Transfer Agreement.
Bridgestone Shenyang was once one of Bridgestone's important layouts in China. As the first tire plant established by Bridgestone when it entered the Chinese market in 1996, it ceased operations on January 26, 2024 after 28 years of operation and withdrew from China's commercial vehicle tire supporting business.
Bridgestone Shenyang plant was established in 1996. It is the earliest tire production base of Bridgestone after entering China. The first domestically produced tire of the Bridgestone brand was also produced here.
Currently, Bridgestone Shenyang has an annual production capacity of 1.7 million TBR tires, owns land use rights of 394,900 square meters, and has property rights of 200,700 square meters of buildings/structures. However, its financial condition has been poor in recent years, with operating income of 140 million yuan and a net profit loss of 480 million yuan in 2024; in the first half of 2025, operating income was only 943,200 yuan and a loss of 564 million yuan.
Sailun Tire is mainly engaged in the research and development, production and sales of tire products, including TBR tires, PCR tires and OTR tires. The company is headquartered in Qingdao, Shandong, and is one of the leading tire manufacturers in China.
The transaction price of Sailun Tire's acquisition was based on the audited net assets of 902.5295 million yuan at the end of 2024, minus the balance of 558.5414 million yuan in the capital pool. It was taken over at a price of 265 million yuan, which is a 20% discount compared to Bridgestone Shenyang owner's equity of 337 million yuan. At the same time, there are no pending employee placement issues in this transaction, and the transaction will be completed within five business days after the preconditions are met, and no later than September 30, 2025.
Sailun Tire has clear strategic considerations for this acquisition. The company said that after the acquisition is completed, it will adjust the management of Bridgestone Shenyang, make full use of its existing land, plant and equipment and other assets, and determine specific construction projects in combination with the company's development strategy. This will help the company quickly increase its production capacity, better meet domestic and foreign market demand, and further enhance the company's competitiveness.
At present, Sailun Tire has a planned annual production capacity of 27.65 million TBR tires, 106 million PCR tires and 447,000 tons of OTR tires, and the capacity utilization rate of each plant is at a relatively high level. The acquisition of Bridgestone's production capacity in Shenyang is undoubtedly a powerful supplement to its capacity layout.
At the industry level, the overall demand in the tire market remains stable. In 2024, the global tire market demand increased by 1.8% year-on-year to 1.854 billion tires. However, the performance of various companies was obviously differentiated. Sailun Tire was one of the few domestic listed tire companies that achieved double growth in revenue and profit in 2024, and the profit growth rate was higher than the revenue. In the first quarter of 2025, it was the only domestic listed tire company to achieve positive year-on-year profit growth.
In the face of industry challenges, such as fluctuations in raw material prices and international trade barriers, Sailun Tire Chairman Liu Yanhua said that the company will continue to deploy global production, increase R&D investment and carry out technological innovation. Previously, Sailun Tire has promoted the construction of projects such as the expansion of TBR tires in Cambodia, factories in Indonesia and Mexico.
Sailun Tire's acquisition of Bridgestone Shenyang is expected to seize market opportunities and add new bargaining chips to its competition in the tire market.
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