AKRON (July 9, 2004) — Goodyear plans to invest $50 million over two years to expand capacity for radial medium truck tires at its 60-year-old plant in Cali, Colombia.&Copy;
The first phase is expected to begin soon and be complete by 2006. Goodyear said the expansion will satisfy the growing Colombian automotive market as well as those elsewhere in Latin America, including Mexico, Venezuela, Ecuador and Chile.
Goodyear did not say how much it will expand capacity nor how the project will affect employment at the plant.
“Growth in the Colombian tire market is encouraging, and new opportunities created by radial medium truck tire manufacturing and sales are exciting propositions,” said Eduardo Fortunato, president of Goodyear's Latin America region.
In the first quarter of 2004, the Latin American unit posted 30.6-percent jump in sales, to $302.6 million, while segment operating income more than doubled to $61.5 million from $26.6 million.
Goodyear de Colombia S.A. celebrated its 60th anniversary in June.