AKRON (June 10, 2011) — Goodyear has agreed to sell its global tire-reinforcement wire business to South Korea's Hyosung Corp., pending government and regulatory approvals and other customary closing conditions, for approximately $50 million.
The business comprises wire plants in Asheboro, N.C., and Colmar-Berg, Luxembourg, with about 600 employees.
Goodyear and Hyosung, a multinational corporation with substantial tire reinforcement operations—including Goodyear's former textile reinforcement business—will sign a multi-year supply agreement upon closing, Goodyear said.
“This transaction reinforces our focus on providing innovative consumer and commercial tires in targeted market segments,” said Goodyear Chairman and CEO Richard Kramer.
Seoul, South Korea-based Hyosung has produced tire reinforcements since 1968. It has tire reinforcement operations in South Korea as well as in Brazil, China, Luxembourg, Vietnam and the U.S. It makes nylon, polyester, rayon and PEN fibers as well as steel cord reinforcement.
Goodyear sold its global tire fabric operations to Hyosung in 2006.
The sale, which is expected to close in the third quarter, is not expected to result in a significant gain or loss, Goodyear said. The firms did not say what sales revenue the business represents.
Hyosung generated $1 billion in tire reinforcement-related sales last year. The business represents 14 percent of the corporation's overall sales.