Goodyear and its affiliates will receive approximately $50 million for the business, subject to post-closing adjustments. The business, which manufactures tire reinforcement wire in Asheboro, North Carolina, and Colmar-Berg, Luxembourg, employs about 600 people.
In addition, Goodyear and Hyosung, a multinational corporation with substantial tire reinforcement operations, will sign a multi-year supply agreement upon closing. The sale, which is expected to close in the third quarter of 2011, is not expected to result in a significant gain or loss.
"This transaction reinforces our focus on providing innovative consumer and commercial tires in targeted market segments," said Richard J. Kramer, Goodyear chairman and chief executive officer.
"Our wire plant associates manufacture outstanding products that have greatly contributed to the quality of Goodyear tires. We thank them for these contributions," he said.
Hyosung, headquartered in Seoul, South Korea, has produced tire reinforcements since 1968. It has tire reinforcement operations in South Korea as well as in Brazil, China, Luxembourg, Vietnam and the United States. Goodyear sold its global tire fabric operations to Hyosung in 2006.
Source: Goodyear Tire & Rubber