Goodyear issues statement on China investment

By David Shaw

Akron Ohio -- While no-one from Goodyear was available to comment on yesterday's reports of a large investment in China, the company has now issued a statement saying it will not comment on on-going investment plans. "We will make the appropriate announcements once any decisions have been finalised." said the company.

Goodyear added, "Dalian is already an important location for Goodyear and further investments in that location are possible, however we continue to explore opportunities in Asia and Dalian is one of them. Further, the ability to invest $1000 million in one plant in less than several years is an impossibility for Goodyear."

Nevertheless, the company did not deny the scale of the investment plans, referring only to its inability to fund a $1000 million investment programme in a short timescale. None of the tyre majors has committed to this level of investment in China, and if the reports are true, then it marks a major change of direction for Goodyear, which has been investing substantially less than its rivals in new capacity in recent years.