Goodyear Tire & Rubber Co. has entered into an agreement in principle to sell its 95% stake in Goodyear Sumatra Plantations (GSP) to Bridgestone Corp. of Japan. Terms of the pending sale have yet to be publicly disclosed.
GSP, which began operations in 1917, is one of the largest natural rubber estates in North Sumatra, Indonesia.
Goodyear said its decision to sell its stake in GSP is consistent with its announced strategy to focus on core business activities, which include manufacturing and selling consumer and commercial tires as well as the production of synthetic rubber.
Goodyear, one of the largest users of natural rubber in the world, says the transaction will not impact its ability to acquire natural rubber for its operations.
The transaction will be completed after several approvals are obtained from the governmental bodies in Indonesia.
