[lbo-talk] Goodyear sets up Shanghai base to expand in China

[uvj at vsnl.com]

HindustanTimes.com

Goodyear sets up Shanghai base to expand in China

Press Trust of India

Shanghai, April 1, 2005

Goodyear Tyre & Rubber Co, the world's largest tyremaker by
volume, plans to establish its Asia-Pacific headquarters in Shanghai,
seeking to move closer to customers such as Ford Motor Co and suppliers as
it expands in China.

Goodyear aims to boost purchases of materials and equipment from
China 10-fold in the next five years, increase retail outlets in the nation
and expand a plant in the northeastern city of Dalian, the Akron, Ohio-based
company said in a statement on Friday.

The US tyremaker, which currently manages its Asian operations
from Ohio, follows companies such as Detroit-based General Motors Corp,
which last year moved its regional headquarters to Shanghai from Singapore
to tap expansion in the world's third-largest vehicle market. China's
passenger car sales grew 15 per cent last year, slowing from 76 per cent
growth in 2003.

Goodyear competes with France's Michelin & Cie SCA, Japan's
Yokohama Rubber Co and other overseas tyremakers in China, supplying
customers including Ford, Volkswagen AG and PSA Peugeot Citroen.

The US company was the first overseas tyremaker to start
operations in China, setting up Goodyear Dalian Tyre Co in 1994. The company
is investing $120 million to boost production capacity at the Dalian plant
to 5.3 million tyres annually by the first quarter of 2007, from 1 million
originally, it said.

© HT Media Ltd. 2004.