Akron, Ohio - Goodyear has completed the sale of its global tyre fabric operations to Hyosung Corp., pending post-closing adjustments and completion of the sale of the tyre maker's Brazil operation.
Seoul, South Korea-based Hyosung hopes to finalise the purchase of the Americana, Brazil, business in the first quarter of 2007. That portion of the two-phase transaction represents less than 5 percent of the estimated $80 million sale price, Goodyear said.
In addition to the Americana factory, the sale includes tyre fabric plants in Decatur, Alabama; Utica, New York; and Colmar-Berg, Luxembourg. About 1000 are employed at the four sites.
The tyre fabric operation is not considered a core business by Goodyear, which is focusing primarily on tyres. Hyosung and Goodyear have signed a multi-year supply agreement. The pact could provide a significant cut in costs and improved cash flow, said the company.
From Rubber & Plastics News (A Crain publication)