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Located in the southern Italian province of Bari, the factory makes passenger car tyres and was expected to close in the first half of 2014, the Japanese firm said. It started operations in 1962.
Bridgestone said it was ready to start talks aimed at finding "the best solution in order to minimise, as much as possible, the social impact of the decision on the approximately 950 employees involved".
A company spokesman in Tokyo declined to comment on what measures could be taken as officials begin discussions with the labour union.
Bridgestone blamed the planned closure on "structural changes which have taken place over the last two years in the tyre market both in Europe and globally," citing "increasing pressure" from lower-cost rivals in emerging markets and a worldwide drop in tyre demand.
"This decision has been taken after a thorough analysis of all possible alternatives, but none of these were feasible," it said, adding that the company was left "with no other choice than to proceed with the closure".
Car tyre demand in the European Union was likely to remain below pre-2011 levels until at least 2020, it said.
Bridgestone's net profit last year soared 67 percent to $1.83 billion with the company citing a weaker yen, strong sales of premium tyres and improved demand in Asia and at home, which offset declines in Europe.