Hyosung Acquires Goodyear Tire Fabric Operation

South Korea-based Hyosung Corp. has acquired the global tire fabric operations of The Goodyear Tire & Rubber Co., Akron, Ohio, for approximately $80 million, after obtaining government and regulatory approvals and agreeing to certain closing conditions.

The deal includes Goodyear’s tire-fabric manufacturing operations in Decatur, Ala.; Utica, N.Y.; Brazil; and Luxembourg. These facilities employ some 1,000 workers.

In addition, Hyosung signed a multi-year supply agreement under which Goodyear expects to purchase fabric worth approximately $350 million to $400 million in the first year.

Goodyear said it sold its tire-fabric assets in order to concentrate on its core business of commercial and consumer tire manufacturing. The company expects to realize considerable cost savings and improved cash flow as a result of the deal.

Hyosung has been manufacturing nylon tire cord since 1968, and polyester tire cord since 1978. The company also manufactures tire cord using polyethylene naphthalate and lyocell.

September/October 2006

 

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