Goodyear acquisition, investment to support Asia-Pacific OTR growth

Earlier this month, Goodyear Tire & Rubber announced it now holds 100 per cent ownership of its Nippon Giant Tire (NGT) subsidiary in Tatsuno, Japan. The tyre maker has been the majority shareholder in NGT since 1985 and purchased the shares owned by its joint venture partners, Toyo Tire & Rubber Co., Ltd. and Mitsubishi Corporation, for an undisclosed amount. Goodyear now plans to invest US$250 million to upgrade and expand NGT’s tyre manufacturing facility in order to increase its global supply of OTR tyres for key customers.

The expansion will, Goodyear states, also support growth in the company’s Asia Pacific OTR business, primarily in Australia, which is one of the world’s largest OTR tyre markets. In a press release, Goodyear said the plant upgrades will “significantly grow NGT’s capabilities by utilising new manufacturing technologies and processes.” The expanded facility is expected to be fully operational in early 2014 and increase employment at the operation to approximately 400 workers.

“Goodyear’s OTR tyres are in high demand globally,” said Goodyear chairman and chief executive officer Richard J. Kramer. “This expansion in Japan is aligned to our strategy roadmap, as it will enable us to use market-back innovation to grow in one of our targeted market segments, the global OTR business.”

According to Dan Smytka, president of Goodyear’s Asia Pacific region, the investment will enable NGT to manufacture a full line of 57-inch tyres, as well as 63-inch tyres at a future date. “The time is right for us to increase our presence in OTR in Asia Pacific,” he said. “We are proud of our achievements and will continue to build on the strong momentum accelerated by this expansion.”

Goodyear first produced 63-inch OTR tyres at Topeka, Kansas plant in the US in late 2010. The company also produces OTR tyres at facilities in Brazil, Colombia, Germany, Luxembourg, India, Indonesia, Thailand, South Africa and Turkey.