Goodyear sells global wire business
Goodyear Tire & Rubber has agreed to sell its global wire business to Hyosung Corporation, pending government and regulatory approvals and other customary closing conditions. The Korean company will pay Goodyear and its affiliates approximately US$50 million for the business, subject to post-closing adjustments. Included in the deal are the tyre reinforcement wire manufacturing plants in Colmar-Berg, Luxembourg and Asheboro, North Carolina, which together employ some 600 people. In addition, upon closing the deal Goodyear and Hyosung will sign a multi-year supply agreement. The sale is expected to close in the third quarter of 2011; Goodyear says it doesn’t expect the sale to result in a significant gain or loss.
“This transaction reinforces our focus on providing innovative consumer and commercial tyres in targeted market segments,” said Richard J. Kramer, Goodyear chairman and chief executive officer. “Our wire plant associates manufacture outstanding products that have greatly contributed to the quality of Goodyear tyres. We thank them for these contributions.”
The newly-acquired Goodyear wire business complements Hyosung’s existing cord production; it produced its first nylon tyre cord in Korea in 1968 and began manufacturing polyester tyre cord ten years later. In 2006 the company acquired Goodyear’s global tyre fabric operations. Today, Hyosung operates plants in South Korea, Brazil, China, Luxembourg, Vietnam and the United States and supplies its products to Goodyear and a number of other major manufacturers, including Michelin, Bridgestone, Continental and Pirelli, not to mention the two largest tyre makers in its home market, Hankook and Kumho. The Seoul-based firm is said to hold the largest global market share for polyester tyre cord.