A new tire factory in San Luis Potosi, Mexico, will be Goodyear’s most technologically advanced. Capital investment for the facility will total around US$500m to US$550m, net of government incentives, and is consistent with the company’s existing capital allocation plan.
Combined with investments in existing US and Canadian factories, the plant 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 2014-2019.
Production at the plant is scheduled to begin in mid-2017 and annual capacity will be approximately six million tires per year. It will be a zero waste-to-landfill and zero solvent facility, and will use natural gas, energy efficient LED lighting and state-of-the-art dust collection equipment.
Goodyear’s selection of San Luis Potosi followed 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.
28 April, 2015
