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      Used Cars: Goodyear Closes Sale of Global Tire Fabric Operations
    Posted on Saturday, December 30 @ 00:01:46 UTC by Cars
     
     
      Used Cars, Used Car, Used Auto Goodyear Closes Sale of Global Tire Fabric Operations

    AKRON, Ohio, Dec. 29 -- The Goodyear Tire & Rubber Company has closed on the previously announced sale of its tire fabric operations to Hyosung Corporation, pending post-closing adjustments and completion of the sale of its Americana, Brazil, operation.


    As part of this global transaction, Goodyear plans to complete the previously announced sale of its Brazil operation to Hyosung in the first quarter of 2007, pending government and regulatory approvals. This portion of the transaction represents less than 5 percent of the sale price.


    Goodyear said the decision to sell the operations, which produce and treat fabric that is used in tires, is part of the company's strategy to focus activity and investment in its core consumer and commercial tire businesses.


    In addition, the companies have signed a multi-year supply agreement. Goodyear said it believes that the supply agreement could provide it with significant cost savings and improved cash flow.


    "We thank our fabric associates for their many important contributions to Goodyear over the decades," said Robert J. Keegan, Goodyear chairman and chief executive officer. "We look forward to a long and rewarding relationship with Hyosung."


    Goodyear's global tire fabric operation includes plants in Americana, Brazil; Colmar-Berg, Luxembourg; Decatur, Alabama, and Utica, New York. It has approximately 1,000 employees.


    Hyosung, headquartered in Seoul, South Korea, is one of Korea's largest industrial conglomerates, with multiple businesses in textiles, industrial materials, chemicals, power and industrial systems, construction, IT and trading. Hyosung Tire Reinforcements has produced tire cord since 1968 and operates globally including North America, Korea and China.


    Goodyear is one of the world's largest tire companies. The company manufactures tires, engineered rubber products and chemicals in more than 100 facilities in 29 countries around the world. Goodyear employs about 80,000 people worldwide.




    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. Actual results may differ materially from those indicated by such forward-looking statements as a result of various factors. There are a variety of additional factors, many of which are beyond the company's control, which affect its operations, performance, business strategy and results and could cause its actual results and experience to differ materially from the expectations and objectives expressed in any forward-looking statements. These factors include, but are not limited to, actions and initiatives taken by both current and potential competitors, increases in the prices paid for raw materials and energy, the company's ability to realize anticipated savings and operational benefits from its cost reduction initiatives, potential adverse consequences of litigation involving the company and pension plan funding obligations, as well as the effects of more general factors such as changes in general market or economic conditions or in legislation, regulation or public policy. Additional factors are discussed in the company's filings with the Securities and Exchange Commission, including the company's annual reports 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.
     
     
     
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