AKRON (June 10, 2011)—Hyosung Corp. plans to purchase Goodyear's global wire business for about $50 million later this year.
As part of the agreement, Goodyear and Seoul, South Korea-based Hyosung, a multinational corporation with substantial tire reinforcement operations, will sign a multi-year supply pact once the deal is closed, which is expected to occur in the third quarter. The transaction is subject to government and regulatory approvals along with other customary closing conditions, Goodyear said.
The business, which makes tire reinforcement wire at plants in Asheboro, N.C., and Colmar-Berg, Luxembourg, employs about 600.
The sale reinforces Goodyear's focus on providing consumer and commercial tires in targeted market segments, according to Richard J. Kramer, chairman and CEO of the Akron-based company.
Hyosung, which purchased Goodyear's tire fabric operations in 2006, has produced tire reinforcements since 1968. It operates tire reinforcement facilities in South Korea, the U.S., Brazil, China, Luxembourg and Vietnam.