Mexico City – 24 April 2015 - The Goodyear Tire & Rubber Company will build a new tire factory in San Luis Potosi, Mexico. The new factory, to begin production in mid-2017, will be Goodyear’s most technologically advanced and have a capacity of about six million tires per year. When it reaches full production, the factory will employ about 1,000 people.
Goodyear’s selection of San Luis Potosi follows an extensive review of potential locations throughout the Americas. The review took into consideration factors including cost structure, logistics, infrastructure, skilled workforce, tariffs and quality-of-life issues.
“Our new factory will provide us with a world-class manufacturing asset and will be a strong complement to our existing plants in North America and Latin America. The new plant advances our strategy to serve the needs of our customers and is consistent with our focus on investing in high return projects that drive profitable growth,” said Goodyear Chairman and Chief Executive Officer Richard J. Kramer
Total capital investment for the project will be approximately $500 million to $550 million, net of government incentives, and is consistent with the company’s existing capital allocation plan. Its outlook for 2015 and 2016 capital expenditures remains unchanged at $1.1 billion and $1.2 billion to $1.3 billion, respectively.
Goodyear is one of the world’s largest tire companies. It employs about 67,000 people and manufactures its products in 50 facilities in 22 countries around the world.