AKRON (May 29, 2014) — Add Goodyear to the list of tire makers planning to build or expand tire plants closer to home.
The Akron-based tire maker said it plans to invest about $500 million to build a consumer tire factory in North America or Latin America.
The plant would have an initial annual capacity of about 6 million high-value-added tires for the OE and replacement markets in the Americas, with the ability to expand capacity as demand increases, according to the tire maker.
Goodyear said site selection is under way to identify a location and tire production is expected to begin in the first half of 2017.
In a presentation at the KeyBanc Capital Markets' Industrial, Automotive and Transportation Conference in Boston today, Goodyear Executive Vice President and CFO Laura K. Thompson said the company expects to make a formal announcement of the site selection by year-end or early 2015.
The consumer tire market in the Americas is expected to grow at a rate of about 2.5 percent annually through 2019, for a total of about 71 million more tires, 90 percent of which is expected to be high-performance tires. Goodyear said it expects demand for its high-performance tires to grow by 12 million units by 2019 in the Americas.