New York - Goodyear Tyre & Rubber said on Wednesday it has acquired 100 percent of its Nippon Giant Tyre subsidiary, which produces giant tyres for earthmovers used in mining and roadworks, for an undisclosed amount.
Goodyear, the majority shareholder of NGT since 1985, said it had bought the shares owned by its joint venture partners, Toyo Tyre & Rubber and Mitsubishi Corporation.
The US company will also invest $250-million to upgrade and expand Tatsuno-based NGT's tyre manufacturing facility.
The expansion will also support growth in the company's Asia-Pacific off-the-road tyre business, primarily in Australia, which is one of the world's largest markets for OTR tyres, Goodyear said.
OTR tyres are used by earthmover equipment such as dump trucks, graders, cranes and fork lifts.
The expanded facility is expected to be fully operational in early 2014.
“Goodyear's OTR tyres are in high demand globally,” said Richard Kramer, chairman and chief executive of the Akron, Ohio-based company.
Goodyear, one of the world's largest tyre companies, manufactures its products in 22 countries and employs approximately 72 000 people.
Goodyear announced the acquisition after the US markets closed. Goodyear shares leaped 4.4 percent higher amid a sharp overall market rally, but were down 0.9 percent in after-hours trade. - Sapa-AFP