SAN LUIS POTOSI, Mexico—Goodyear will invest at least $500 million, and as much as $550 million, to build a new tire factory in San Luis Potosi to serve its customers in the Americas.
Chairman and CEO Richard Kramer made the announcement April 24 in a ceremony with Mexico President Enrique Pena Nieto. The executive said Goodyear plans to break ground on the facility in June.
It will be Goodyear's first tire manufacturing plant in Mexico. The firm operates six in the U.S., two in Canada and five in Latin America—in Brazil, Chile, Colombia, Peru and Venezuela.
“This is an important investment in Goodyear's future,” Kramer said in a statement. “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.”
Goodyear said the car and light truck tire factory is projected to begin production in mid-2017 and that it will be the firm's most technologically advanced with the capacity of about 6 million tires per year.
A company spokesman said the company has not outlined capacity scale-up targets yet.
Once it reaches full production, employment is projected to reach 1,000 people. Goodyear did not disclose how big it projects the building to be.
Goodyear selected San Luis Potosi after an extensive review of potential locations throughout the Americas. The process took into consideration such factors as cost structure, logistics, infrastructure, skilled work force, tariffs and quality-of-life issues.