Goodyear to Expand High-Value Tire Production in Poland

The Goodyear Tire & Rubber Company (NYSE:GT) announced today that its Poland affiliate plans to invest more than $100 million to expand production of high-value tires.

The investment, which will take place over the next four years, will be made at the company's TC Debica operation, one of Goodyear's lowest cost facilities. The investment is consistent with Goodyear's strategy to upgrade and expand existing capacity to produce high performance and ultra-high performance tires.

"This investment demonstrates our commitment to drive our growth by aligning low-cost manufacturing with high-value-added tires," said Goodyear Chairman and Chief Executive Officer Robert J. Keegan. "A continued stream of innovative new products backed by great marketing, and a lower global cost structure create tremendous opportunities for our future."
This major investment is another clear indication of Goodyear's confidence in Debica's ability to deliver the highest quality products at a competitive cost," said Jarro F. Kaplan, president of Goodyear's Eastern Europe, Africa and Middle East tire business. "This investment will put us in an excellent position to capitalize on the growing market for high performance tires throughout Eastern and Western Europe."

Goodyear holds a 60 percent ownership interest in TC Debica, Poland's largest tiremaker. The company has invested almost $200 million to enhance Debica's operations since acquiring an interest in 1995.

Goodyear is one of the world's largest tire companies. The company manufactures tires, engineered rubber products and chemicals in more than 90 facilities in 28 countries around the world. Goodyear employs more than 75,000 people worldwide.

Certain information contained in this press release may constitute forward-looking statements for purposes of the safe harbor provisions of The Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by such forward-looking statements. There are a variety of additional factors, many of which are beyond the company's control, which affect its operations, performance, business strategy and results and could cause its actual results and experience to differ materially from the assumptions, expectations and objectives expressed in any forward- looking statements. These factors include, but are not limited to: actions and initiatives taken by both current and potential competitors; increases in the prices paid for raw materials and energy; the company's ability to realize anticipated savings and operational benefits from its cost reduction initiatives, including those expected to be achieved under the company's master labor contract with the United Steelworkers (USW) and those related to the closure of certain of the company's manufacturing facilities; whether or not the various contingencies and requirements are met for the establishment of the Voluntary Employee Beneficiary Association (VEBA) to be established to provide healthcare benefits for current and future USW retirees; potential adverse consequences of litigation involving the company; pension plan funding obligations as well as the effects of more general factors such as changes in general market or economic conditions or in legislation, regulation or public policy.

Additional factors are discussed in the company's filings with the Securities and Exchange Commission, including the company's annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K. In addition, any forward-looking statements represent our estimates only as of today and should not be relied upon as representing our estimates as of any subsequent date. While we may elect to update forward-looking statements at some point in the future, we specifically disclaim any obligation to do so, even if our estimates change.

Source:autospectator.com