Goodyear opting out of tyre wire business

GOODYEAR Tire & Rubber is selling its global wire business to multi-national South Korean tyre reinforcement company Hyosung for US$50 million. The business, which manufactures tyre reinforcement wire in the US and in Luxembourg employs 600 people. In addition, Goodyear and Hyosung will sign a multi-year supply agreement upon closing of the sale by the third quarter of this year. Hyosung has produced tyre reinforcements since 1968 and has facilities in South Korea, Brazil, China, Luxembourg, Vietnam and the US. Goodyear also sold its global tyre fabric operations to Hyosung in 2006.(PRA)