Bridgestone teams with Stomil Poznan
Bruno Fruchon, a spokesman for Bridgestone/Firestone in Brussels, confirmed late last week that an announcement was imminent. "That's true, we will have a press release on it early next week," he said.
But Bridgestone would not reveal details of the transaction until it is finalized. "It's not a secret, but we have to wait for a while, when the time comes we will announce everything," said Chikumi Otsuki, head of Bridgestone/Firestone's sales company in Poland.
Bridgestone did confirm that it would form a joint venture with Stomil Poznan - to produce tires for both the domestic and export markets - rather than take an equity stake in the company. The Polish government has been unwilling to sell a piece of Stomil because it produces tires for military use. However, the State Treasury has agreed to transfer some of Stomil's assets to the joint venture.
Stomil's military profile prevented the government from fully privatizing the company, unlike the other two previously state-owned tire makers, Stomil Olsztyn and TC Debica, which were sold in 1995 to France's Michelin and the U.S.'s Goodyear, respectively. Goodyear and Michelin have put nearly $400 million into the two firms, partly through buying the stake and partly through other capital investments.
Stomil Poznan, which does not produce passenger car tires, currently makes tires and related products for the military, mining, agriculture and aviation sectors. In 1997, it pulled in revenue of zl. 100 million ($28 million), with net profit of zl. 5 million ($l.4 million).
But Bridgestone would not reveal details of the transaction until it is finalized. "It's not a secret, but we have to wait for a while, when the time comes we will announce everything," said Chikumi Otsuki, head of Bridgestone/Firestone's sales company in Poland.
Bridgestone did confirm that it would form a joint venture with Stomil Poznan - to produce tires for both the domestic and export markets - rather than take an equity stake in the company. The Polish government has been unwilling to sell a piece of Stomil because it produces tires for military use. However, the State Treasury has agreed to transfer some of Stomil's assets to the joint venture.
Stomil's military profile prevented the government from fully privatizing the company, unlike the other two previously state-owned tire makers, Stomil Olsztyn and TC Debica, which were sold in 1995 to France's Michelin and the U.S.'s Goodyear, respectively. Goodyear and Michelin have put nearly $400 million into the two firms, partly through buying the stake and partly through other capital investments.
Stomil Poznan, which does not produce passenger car tires, currently makes tires and related products for the military, mining, agriculture and aviation sectors. In 1997, it pulled in revenue of zl. 100 million ($28 million), with net profit of zl. 5 million ($l.4 million).
