Goodyear to make investments and repay debt with Engineered Products proceeds
AKRON - Goodyear is considering building new tire plants in Eastern Europe and Asia along with other investments with the USD1.4 billion it netted from the recent sale of its Engineered Products unit to EPD Inc., an entity backed by private equity firm Carlyle Partners IV L.P.
The Akron-based tire maker did not provide more details about where new plants might be located, their capacity or when they would be built. A spokesman said the firm still is considering exact plans. Goodyear previously announced other investments in existing tire factories to increase high value-added capacity by 40-percent globally and increase capacity in existing low-cost plants by 33 percent. The company hopes to have half of its global capacity in low-cost countries by 2012. Its investment plans also include modernization projects in its Gadsden, Ala., and Fayetteville, N.C., plants, which will be aided by state and local government investment incentives. Goodyear said it also plans to repay USD300 million in debt, saving about USD26 million in annualized interest expenses. The firm also expects in the first quarter to repay a further USD650 million in secured notes.