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AKRON, Ohio, June 10, 2011 – The Goodyear Tire & Rubber Company has agreed to sell its global wire business to Hyosung Corporation, pending government and regulatory approvals and other customary closing conditions.
Goodyear and its affiliates will receive approximately $50 million for the business, subject to post-closing adjustments. The business, which manufactures tire reinforcement wire in Asheboro, North Carolina, and Colmar-Berg, Luxembourg, employs about 600 people.
In addition, Goodyear and Hyosung, a multinational corporation with substantial tire reinforcement operations, will sign a multi-year supply agreement upon closing. The sale, which is expected to close in the third quarter of 2011, is not expected to result in a significant gain or loss.
“This transaction reinforces our focus on providing innovative consumer and commercial tires 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 tires. We thank them for these contributions,” he said.
Hyosung, headquartered in Seoul, South Korea, has produced tire reinforcements since 1968. It has tire reinforcement operations in South Korea as well as in Brazil, China, Luxembourg, Vietnam and the United States.
Goodyear sold its global tire fabric operations to Hyosung in 2006.
Goodyear is one of the world’s largest tire companies. It employs approximately 72,000 people and manufactures its products in 55 facilities in 22 countries around the world. Its two Innovation Centers in Akron, Ohio and Colmar-Berg, Luxembourg strive to develop state-of-the-art products and services that set the technology and performance standard for the industry. For more information about Goodyear and its products, go to www.goodyear.com.
Certain information contained in this press release may constitute forward-looking statements for purposes of the safe harbor provisions of The Private Securities Litigation Reform Act of 1995. There are a variety of factors, many of which are beyond our control, that affect our operations, performance, business strategy and results and could cause our actual results and experience to differ materially from the assumptions, expectations and objectives expressed in any forward-looking statements. These factors include, but are not limited to: our ability to realize anticipated savings and operational benefits from our cost reduction initiatives or to implement successfully other strategic initiatives; increases in the prices paid for raw materials and energy; pension plan funding obligations; actions and initiatives taken by both current and potential competitors; deteriorating economic conditions or an inability to access capital markets; work stoppages, financial difficulties or supply disruptions at our suppliers or customers; the adequacy of our capital expenditures; a labor strike, work stoppage or other similar event; our failure to comply with a material covenant in our debt obligations; potential adverse consequences of litigation involving the company; as well as the effects of more general factors such as changes in general market, economic or political conditions or in legislation, regulation or public policy. Additional factors are discussed in our filings with the Securities and Exchange Commission, including our annual report on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K. In addition, any forward-looking statements represent our estimates only as of today and should not be relied upon as representing our estimates as of any subsequent date. While we may elect to update forward-looking statements at some point in the future, we specifically disclaim any obligation to do so, even if our estimates change.