Goodyear Tire & Rubber Co., North America's biggest tiremaker, said its Polish unit will invest more than $100 mln to expand production of high-performance tires.
The spending will occur during the next four years at the TC Debica factory, Goodyear Tire & Rubber Co. said yesterday in a statement. Goodyear, based in Akron, Ohio, owns a 60% stake in TC Debica, which is Poland's largest tiremaker. The expansion is part of Goodyear's plan started in 2005 to trim output in higher-cost factories while expanding production in less expensive plants.
Goodyear is facing increased price competition from companies such as Japan's Bridgestone Corp. That are producing tires in lower-wage regions. Goodyear said it has invested almost $200 million (€152 million) in TC Debica's operations since acquiring an interest in 1995.
The Polish unit makes Goodyear, Dunlop and Fulda tires. Goodyear didn't disclose the unit's annual output. Shares of Goodyear rose 21 cents to $25.39 at 4:21 p.m. in New York Stock Exchange composite trading. The company's statement was released after the NYSE'S close. (Bloomberg)