Goodyear Sells Global Wire Business for $50m
The global wire business is situated in Asheboro, North Carolina, and Colmar-Berg, Luxembourg, and employs about 600 people.
The sale has pending government and regulatory approvals and customary closing conditions, yet to be completed. The sale is expected to close in the third quarter of 2011, and is not expected to result in a significant gain or loss.
In addition, Goodyear and Hyosung, are planning to sign a multi-year supply agreement upon closing.
Richard Kramer, chairman and CEO of Goodyear, said: â€œThis transaction reinforces our focus on providing innovative consumer and commercial tires in targeted market segments. Our wire plant associates manufacture outstanding products that have greatly contributed to the quality of Goodyear tires. We thank them for these contributions.â€
In 2006, Goodyear has sold its global tire fabric operations to Hyosung.
In April 2011, Goodyear has completed the previously announced sale of its Latin American farm tire business to Titan Tire Corporation, a subsidiary of Titan International.
Tire maker Goodyear employs approximately 72,000 people and manufactures its products in 55 facilities in 22 countries around the world. Its two Innovation Centers in Akron, Ohio and Colmar-Berg, Luxembourg strive to develop state-of-the-art products and services that set the technology and performance standard for the industry.
Headquartered in Seoul, South Korea, Hyosung is a producer of tire reinforcements since 1968. It has tire reinforcement operations in South Korea as well as in Brazil, China, Luxembourg, Vietnam and the US.
Will the move commercially benefit Hyosung?
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