AKRON (Sept. 7)—Goodyear said it will sell its tire cord operations in the U.S., Luxembourg and Brazil to South Korean's Hyosung Corp. for $80 million.
The tire maker also agreed to a long-term supply pact with Hyosung, and expects to buy between $350 million and $400 million worth of tire fabric in the first year of the deal. Goodyear said the deal will improve its cash flow and provide cost savings.
Hyosung, based in Seoul, will obtain plants in Utica, N.Y., and Decatur, Ala.; Colmar-Berg, Luxembourg; and Americana, Brazil. The operations employ about 1,000.
The sale is subject to government and regulatory approves, and certain closing conditions, Goodyear said.