Goodyear to build tyre factory in Mexico to serve Americas  

Goodyear Tire & Rubber, with an investment of  around $500 million to $550 million, will build a new tyre factory in San Luis Potosi, Mexico to serve its customers in the Americas.

The new factory is scheduled to be operational by mid-2017 and will be Goodyear’s most technologically advanced and have a capacity of about six million tyre per year. When it reaches full production, the factory will employ about 1,000 people.

 

Goodyear Chairman and Chief Executive Officer Richard J. Kramer made the announcement of new Mexico plant at a ceremony with Mexican President Enrique Peña Nieto

Goodyear Chairman and Chief Executive Officer Richard J. Kramer made the announcement of new Mexico plant at a ceremony with Mexican President Enrique Peña Nieto

The new factory, combined with investments in its existing U.S. and Canadian factories, will enable Goodyear to meet the strong and growing market demand for high-value-added (HVA) consumer tyres in North America and Latin America. According to Goodyear, industry demand for HVA tyres in these regions is expected to increase by 10 million tyres per year from 2014-19.

“This is an important investment in Goodyear’s future,” said Goodyear Chairman and Chief Executive Officer Richard J. Kramer . “Our new factory will provide us with a world-class manufacturing asset and will be a strong complement to our existing plants in North America and Latin America. The new plant advances our strategy to serve the needs of our customers and is consistent with our focus on investing in high return projects that drive profitable growth.”

Goodyear’s selection of San Luis Potosi follows an extensive review of potential locations throughout the Americas. The review took into consideration factors including cost structure, logistics, infrastructure, skilled workforce, tariffs and quality-of-life issues.

“San Luis Potosi is an ideal location for the new factory. Its central geographic location will enable us to support our valued customers and consumers throughout North America, Mexico and Latin America,” said Kramer.

 

The new factory will reflect Goodyear’s commitment to the environment. It will be a zero-waste-to-landfill and zero-solvent facility, and it will use natural gas, energy efficient LED lighting and state-of-the-art dust collection equipment.

Total capital investment for the project will be approximately $500 million to $550 million, net of government incentives, and is consistent with the company’s existing capital allocation plan. Its outlook for 2015 and 2016 capital expenditures remains unchanged at  $1.1 billion and $1.2 billion to $1.3 billion, respectively.

 

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