Goodyear Finalises Sale of Tyre Fabric Operations

While most of us were struggling to get over Christmas, the Goodyear Tire & Rubber Company were busy finalising the sale of its tyre fabric operations to South Korea’s Hyosung Corporation. The deal was closed on December 29, pending post-closing adjustments and the sale of its operation in Americana, Brazil.

Goodyear has said that the decision to sell its fabric treating operations was part of the company’s strategy to focus both activity and investment on its core consumer and commercial tyre businesses. Hyosung will now supply Goodyear after both parties signed a multi-year supply agreement, a move that Goodyear believes will lead to significant cost savings and improved cash flow.

Based in Seoul, Hyosung is one of Korea’s largest industrial groups, with a diversity of operations. Hyosung Tire Reinforcements have been producing tyre cord since 1968 and has operations in a number of countries.