MEXICO CITY — Goodyear has selected a site in San Luis Potosi, Mexico, as the location of a car and light truck tire plant the company will build to supply markets throughout the Americas.
Goodyear has budgeted $500 million to $550 million for the plant, which should begin production by mid-2017. Planned capacity will be 6 million tires a year, with 1,000 employees at full capacity, the company said.
The plant will focus on what Goodyear calls “high value-added” tires, demand for which in the Americas is expected to grow by 10 million units a year through 2019.
Goodyear Chairman and CEO Richard Kramer announced the selection at a ceremony April 24 in Mexico City with Mexican President Enrique Peña Nieto. Goodyear has posted a video of the ceremony on YouTube.
Mr. Kramer said Goodyear chose Mexico for the plant, its first new tire factory in the Americas in 25 years, because “San Luis Potosi is an ideal location...."
"Its central geographic location will enable us to support our valued customers and consumers throughout North America, Mexico and Latin America," he added.
The plant itself will be built in the World Trade Center Industrial complex, a business/industrial park south of San Luis Potosi proper that offers the largest intermodal terminal in Mexico, a customs office on site and Free Trade Zone (FTZ) status.
It is located near the most important highway and rail road in Mexico also known as the NAFTA corridors. There are 20 other manufacturing ventures already situated at the site, including ABB and Valeo.