TYLER, Texas (April 13, 2004) — Goodyear will upgrade tire manufacturing capabilities at its Kelly-Springfield Tire Co. plant in Tyler following the approval of a five-year tax abatement plan by officials in Smith County, Texas.
The deal — approved recently by the Smith County commissioners and the Tyler Junior College board of trustees, both of which receive tax dollars from Goodyear — sets the stage for the company to add machinery and upgrade other equipment at the tire factory.
No new workers are expected to be hired, according to a Goodyear spokeswoman.
Goodyear plans to install up to $12 million worth surplus machinery from other Goodyear facilities at the Tyler plant, where Goodyear cut production last year by 11,000 units a day to reduce overcapacity in the market. The company laid off 200 workers in the process.
The production cutback affected primarily smaller-sized Kelly-brand passenger tires, Goodyear said at the time, but the company intends to convert part of the facility´s capacity to larger sized tires, 17 inches or more in diameter.
The abatement covers taxation on equipment that will be transferred from other Goodyear factories. It also would cover retrofitting of existing machinery. In effect, the tax abatement will help the company retool and modernize the plant, a spokeswoman said.
The Smith County abatement is $154,672 over four years, while Tyler Junior College is expected to forgo $67,796 over a five-year period.
The Tyler factory is operating on partially protected status under Goodyear´s ratified master contract with the United Steelworkers of America union.