Hyosung to Buy Goodyear Tyre Cord Plants
Korean company Hyosung Corp. is to take over four tyre cord plants from Goodyear Tire & Rubber for an undisclosed price, although various sources are quoting a figure of $80 million. Hyosung will acquire 100 per cent of Goodyear subsidiary Utica, plus it will assume control of the tyre manufacturer’s cord factory at Decatur. The other two factories are sited in Luxembourg and Brazil. In addition to the acquisitions, Hyosung has struck a deal – reportedly worth $3.2 billion – to supply Goodyear with tyre cord.
In a statement, Hyosung said: “This acquisition will allow Hyosung to possess production sites in South America and Europe, adding to the currently existing global production sites in America and China so that it can produce and supply locally manufactured products on every continent.”
The deal will increase Hyosung’s share of the global tyre market from 25 per cent to 30 per cent. It is not the first tyre cord acquisition for the Korean company, as it has purchased two factories from Michelin in recent years. Last year Hyosung’s turnover from tyre cord was worth more than $730 million and, during the same period, the company signed a 10-year agreement with Michelin, worth $650 million, for the supply of tyre cord.