Goodyear Tire & Rubber has acquired 100% of its Nippon Giant Tire subsidiary from its joint venture partners, Toyo Tire & Rubber Co. Ltd and Mitsubishi Corp. Nippon Giant, which produces giant tires for earthmovers used in mining and roadworks, was purchased for an undisclosed amount.
The US company will also invest US$250 million to upgrade and expand Tatsuno-based NGT’s tire manufacturing facility.
The expansion will also support growth in the company’s Asia-Pacific off-the-road tire business, primarily in Australia, which is one of the world’s largest markets for OTR tires, Goodyear said.
OTR tyres are used by earthmover equipment such as dump trucks, graders, cranes and fork lifts. The expanded facility is expected to be fully operational in early 2014.
“Goodyear’s OTR tyres are in high demand globally,” said Richard Kramer, chairman and chief executive of the Akron, Ohio-based company.Goodyear, one of the world’s largest tire companies, manufactures its products in 22 countries and employs approximately 72,000 people. Goodyear announced the acquisition after the US markets closed.
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