Goodyear plans expanded capital investments
OHIO, United States — GOODYEAR Tire and Rubber Co plans to make plant investments over the next two years aimed at increasing production of more profitable high-end tires.
Chairman and CEO Richard Kramer, previewing yesterday’s presentation to investors in New York, said in a statement the company would make capital investments of US$1.1 billion to US$1.3 billion in 2012 and 2013. That is up slightly from this year’s expected US$1.1 billion to US$1.2 billion.
Between US$500 million and US$600 million each year will go toward modernising and expanding plants and new construction.
The investments are intended to boost annual tire production by up to five per cent, with a focus on high-end products.
The Akron-based company lost US$216 million in 2010, reflecting a US$160-million charge to close a plant in Union City, Tennessee.
