Increased Synthetic Rubber Use Cuts Costs for Goodyear

Goodyear Tire & Rubber Co. has said that it has doubled the amount of synthetic rubber it can substitute for natural rubber as it looks to control costs. Over 15 per cent of the natural rubber used in Goodyear tyres can now be replaced by synthetic compounds developed by the company, said company spokesman Keith Price. This compares with a previous figure of eight per cent.

Tyre manufacturers are facing increasing pressure to cut costs as rubber nears a 20-year high of $1 a pound. Goodyear has raised prices seven times in the past two years and is closing factories and cutting workers. According to Keith Price, the company expects to save “millions of dollars a year” through broader use of synthetic rubber, although he would not give more details.