Goodyear's US tyre output falls 30 percent after Rita

Akron, Ohio -- Goodyear Tire & Rubber Company said it has implemented temporary reductions in production at its North American tyre facilities due to disruptions in the supply of certain raw materials resulting from the impact of Hurricane Rita in Texas and Louisiana.

The company said tyre output is about 70 percent of normal, but that stocks and inventories will allow it to meet its obligations to customers.

According to Christopher Clark, senior vice president, global sourcing, all of Goodyear's North American tyre and engineered products plants are currently operational, although tyre production has been reduced by approximately 30 percent in response to supplier shortages.

Goodyear said it expects to increase production as the raw material disruption eases in the coming weeks. "At our present production and inventory levels we currently anticipate that we have the ability to meet our obligations," Clark said.

In a statement, the company said it is talking to customers and that "no deliveries to customers have been impacted to date." Clark added, "We are sensitive to our customer needs and are working diligently to meet their requirements."

Clark continued saying, "At our present production and inventory levels we currently anticipate that we have the ability to meet our obligations," Clark said. However, the company statement continued, "because of the uncertainty around supplier shortages and transportation system difficulties associated with the hurricane, Goodyear has declared force majeure under certain of its contracts.

Godyear added that its chemical facilities in Texas suspended operations in anticipation of the hurricane. Production resumed in Bayport and Houston after the hurricane, and the company's Beaumont operations resumed partial production on 30 Sept. Full capabilities, said Goodyear, are expected at Beaumont when utilities are restored. The temporary disruption at Beaumont is not expected to significantly impact Goodyear's tyre or engineered products production, said the company.

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Press releasefrom Goodyear