The Goodyear Tire & Rubber Company has announced that it has signed a definitive agreement to sell its Off-the-Road tyre business to The Yokohama Rubber Company, Ltd for US$905 million in cash. The transaction follows a previously announced strategic review of the OTR tyre business in connection with the Goodyear Forward transformation plan.
Goodyear’s OTR tyre business provides industry-leading OTR tyres around the world for surface and underground mining, construction and quarry, and port and industrial end markets. It added: “Goodyear OTR offers a comprehensive suite of trusted products, services and tyre management solutions that help customers optimise their operations and improve productivity and efficiency.”
“The sale of the OTR business marks an important milestone as we continue to execute against our Goodyear Forward transformation plan,” said Mark Stewart, Goodyear Chief Executive Officer and President. “We are grateful to our OTR colleagues who have driven the success of the business and are committed to working closely with Yokohama to ensure a smooth transition for customers and associates.”
Goodyear will retain its business providing OTR tyres for US military and defence applications. Pursuant to a Product Supply Agreement to be entered into with Yokohama in connection with the closing of the transaction, Goodyear will manufacture certain OTR tyres for Yokohama at some of its manufacturing locations for an initial period of up to five years after the closing of the transaction.
The transaction is subject to regulatory approvals, other customary closing conditions and consultations and is expected to close by early 2025. Goodyear intends to use transaction proceeds to reduce leverage and fund initiatives in connection with the Goodyear Forward transformation plan.
Goodyear produces OTR and mining tyres not only at its main base in Akron, but also at a range of other global locations. These locations are Colmar-Berg in Luxembourg; Nippon Giant Tire in Tatsuno, Japan; Topeka, Kansas; Americana, Brazil; Cali, Colombia; Bogor, Indonesia; Kuala Lumpur, Malaysia; and Karienga, South Africa.
The move brings market share and production capability and capacity for much larger radial mining tyres into Yokohama’s offering including 57 in and 63 in radials. Yokohama’s existing OTR tyre business is mainly for ADTs but also smaller to mid class rigid trucks. This includes radial tyres in the 33.00R51 size with multiple compound options, for example the RB42 and RL42 tyres with E-4 deep rock tread. The RB42 is also offered in a 27.00R49 size plus it has the RL47 46/90R57 tyre. Yokohama in addition supplies bias ply tyres up to 40.00-57 size and has a wide range of both radial and bias ply wheel loader, wheel dozer and grader tyres. Its OTR tyres are made in West Point, Mississippi as well as Onomichi City, Japan; Visakhapatnam, India and other global locations.
