AKRON (June 29, 2004) — Goodyear has completed its previously announced acquisition of the remainder of Sava Tires d.o.o., paying about $52 million for the 20-percent ownership stake of the Kranj, Slovenia-based tire maker it did not already own.
Goodyear earlier said the move would consolidate its sourcing capabilities in low-cost countries and strengthen its position in the expanding central and eastern European markets.
Goodyear gained full control of Sava by exercising its call option to purchase the portion of Sava Tires owned by Slovenia´s Sava d.d. Goodyear acquired a 60-percent stake in Sava Tires in 1997 and increased it to 80 percent in 2002, paying $38.5 million at that time for the added stake.
Goodyear´s stake in Sava Tires is held by its Goodyear Dunlop Tires Europe affiliate.
Goodyear has spent more than $100 million to modernize Sava Tire, which made more than 7 million tires for cars, light trucks and commercial vehicles in 2003, in its more than six years of ownership. It exported more than 80 percent of its production.
Goodyear said it expects its European-based tire businesses to make more than 84 million tires this year, with about 40 percent coming from low-cost facilities in Slovenia, Poland and Turkey.