Goodyear Chairman and Chief Executive Officer Richard J. Kramer made the announcement in Mexico City at a ceremony with Mexican President Enrique Peña Nieto on April 24. The new factory, combined with investments in its existing U.S. and Canadian factories, will enable Goodyear to meet the strong and growing market demand for high-value-added (HVA) consumer tires in North America and Latin America. Industry demand for HVA tires in these regions is expected to increase by 10 million tires per year from 2014-19.

The new factory, to begin production in mid-2017, will be Goodyear‘s most technologically advanced and have a capacity of about six million tires per year. When it reaches full production, the factory will employ about 1,000 people. The selection of San Luis Potosi follows an extensive review of potential locations throughout the Americas. The review took into consideration factors including cost structure, logistics, infrastructure, skilled workforce, tariffs and quality-of-life issues.

The new factory will reflect Goodyear‘s commitment to the environment. It will be a zero-waste-to-landfill and zero-solvent facility, and it will use natural gas, energy efficient LED lighting and state-of-the-art dust collection equipment.

Total capital investment for the project will be approximately $500 million to $550 million, net of government incentives, and is consistent with the company‘s existing capital allocation plan. Its outlook for 2015 and 2016 capital expenditures remains unchanged at $1.1 billion and $1.2 billion to $1.3 billion, respectively.

(dw)