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.