Goodyear closes sale of global tire fabric operations
Goodyear Tire & Rubber Co. has closed on the previously announced sale of its tire fabric operations to Hyosung Corp. ("Goodyear agrees to sell global tire fabric operations to new partner," Sept. 7, 2006) pending post-closing adjustments and completion of the sale of its Americana, Brazil, operation.
As part of this global transaction, Goodyear plans to complete the previously announced sale of its Brazil operation to Hyosung in the first quarter of 2007, pending government and regulatory approvals. This portion of the transaction represents less than 5% of the sale price.
Goodyear's global tire fabric operation includes plants in Americana, Brazil; Colmar-Berg, Luxembourg; Decatur, Alabama; and Utica, New York. It has approximately 1,000 employees.
Goodyear says the decision to sell the operations, which produce and treat fabric that is used in tires, is part of the company's strategy to focus activity and investment in its core consumer and commercial tire businesses.
In addition, the companies have signed a multi-year supply agreement. Goodyear says it believes that the supply agreement could provide it with significant cost savings and improved cash flow.
Hyosung, headquartered in Seoul, South Korea, is one of Korea's largest industrial conglomerates, with multiple businesses in textiles, industrial materials, chemicals, power and industrial systems, construction, IT and trading. Hyosung Tire Reinforcements has produced tire cord since 1968.