South Korea Hyosung Acquires Goodyear Tire Reinforcement Line Business

Goodyear Tire & Rubber Company (GT) announced on Friday that it has agreed to sell its tire reinforcement line business to South Korea Hyosung Corp for US$50 million. This business has production facilities in Asheboro, North Carolina, and Colmar-Berg, Luxembourg, employing approximately 600 employees.

With the approval of the government and regulatory agencies, the transaction is expected to be completed in the third quarter. After the transaction is completed, Goodyear and Hyosung will also sign a multi-year supply agreement. Goodyear stated that it is expected that this sale will not result in significant gains or losses. Hyosung has acquired Goodyear's global tire cord business in 2006.