Goodyear finalizes sale of global tire fabric operations

The Goodyear Tire & Rubber Company has closed on the previously announced sale of its tire fabric operations to Hyosung Corporation, pending post-closing adjustments and completion of the sale of its Americana, Brazil, operation.

As part of this global transaction, Goodyear plans to complete the previously announced sale of its Brazil operation to Hyosung in the first quarter of 2007, pending government and regulatory approvals. This portion of the transaction represents less than 5 percent of the sale price.

Goodyear said the decision to sell the operations, which produce and treat fabric that is used in tires, is part of the company's strategy to focus activity and investment in its core consumer and commercial tire businesses.

In addition, the companies have signed a multi-year supply agreement. Goodyear said it believes that the supply agreement could provide it with significant cost savings and improved cash flow.

"We thank our fabric associates for their many important contributions to Goodyear over the decades," said Robert J. Keegan, Goodyear chairman and chief executive officer. "We look forward to a long and rewarding relationship with Hyosung."

Goodyear's global tire fabric operation includes plants in Americana, Brazil; Colmar-Berg, Luxembourg; Decatur, Alabama, and Utica, New York. It has approximately 1,000 employees.

Hyosung, headquartered in Seoul, South Korea, is one of Korea's largest industrial conglomerates, with multiple businesses in textiles, industrial materials, chemicals, power and industrial systems, construction, IT and trading. Hyosung Tire Reinforcements has produced tire cord since 1968 and operates globally including North America, Korea and China.

Goodyear is one of the world's largest tire companies. The company manufactures tires, engineered rubber products and chemicals in more than 100 facilities in 29 countries around the world. Goodyear employs about 80,000 people worldwide.