7 Sep 2006
Akron, Ohio -- Goodyear Tire & Rubber Co. has agreed to sell its global tyre cord operations in Luxembourg, Brazil and USA to Hyosung Corporation.
The Korean company will pay Goodyear and its affiliates $80 million (€62.7 million) for tyre fabric manufacturing plants and assets in Colmar-Berg in Luxembourg, Americana in Brazil, Decatur in Alabama and Utica in New York.
The facilities employ about 1000 people.
The Ohio-based tyre maker also agreed to sign a long-term supply agreement with Hyosung, with expected purchases of between $350 million and $400 million in the first year alone.
The tyre maker believed the sale would bring cost savings and improved cash flow.
"As Goodyear drives for improved profitability, we are focusing more activity and investment on our core business of providing innovative consumer and commercial tyres for our customers," Goodyear chairman and chief executive Robert Keegan said.
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