Goodyear Tire & Rubber Co. said it has acquired 100% of its Nippon Giant Tire subsidiary, which produces giant tires for earthmovers used in mining and roadworks, for an undisclosed amount.
Akron, Ohio-based Goodyear (IW 500/58), the majority shareholder of Nippon Giant Tire since 1985, said it had bought the shares owned by its joint-venture partners, Toyo Tire & Rubber Co. Ltd. and Mitsubishi Corp.
Goodyear also will invest $250 million to upgrade and expand Tatsuno-based NGT's tire-manufacturing facility.
The expansion will support growth in the company's Asia-Pacific off-the-road tire business, primarily in Australia, which is one of the world's largest markets for OTR tires, Goodyear said.
Off-the-road tires are used by earthmover equipment such as dump trucks, graders, cranes and forklifts.
Goodyear expects the expanded facility to be fully operational in early 2014.
"Goodyear's OTR tires are in high demand globally," said Chairman and CEO Richard Kramer.
Goodyear, one of the world's largest tire companies, manufactures its products in 22 countries and employs approximately 72,000 people.
Copyright Agence France-Presse, 2012