Korea-based Hyosung Corp. has acquired the global tire fabric operations of The Goodyear Tire &
Rubber Co., Akron, Ohio, for approximately $80 million, after obtaining government and regulatory
approvals and agreeing to certain closing conditions.
The deal includes Goodyear’s tire-fabric manufacturing operations in Decatur, Ala.; Utica,
N.Y.; Brazil; and Luxembourg. These facilities employ some 1,000 workers.
In addition, Hyosung signed a multi-year supply agreement under which Goodyear expects to
purchase fabric worth approximately $350 million to $400 million in the first year.
Goodyear said it sold its tire-fabric assets in order to concentrate on its core business of
commercial and consumer tire manufacturing. The company expects to realize considerable cost
savings and improved cash flow as a result of the deal.
Hyosung has been manufacturing nylon tire cord since 1968, and polyester tire cord since
1978. The company also manufactures tire cord using polyethylene naphthalate and lyocell.