agreed to acquire the global tire fabric operations of The Goodyear Tire & Rubber Co., Akron,
Ohio, for approximately $80 million, pending government and regulatory approvals and subject to
certain closing conditions. The companies did not provide a timetable for closing of the
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. Upon closing, Hyosung
would sign a multiyear supply agreement under which Goodyear expects to purchase fabric worth
approximately $350 million to $400 million in the first year.
Goodyear said it is selling 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 19, 2006