Sumitomo plays down Goodyear break-up reports

Tokyo – Sumitomo Rubber Industries (SRI) has dismissed as “speculative” news reports that it is about to end its long-time partnership with Goodyear Tire & Rubber Co.

“These reports are not based on any announcement that has been made by SRI or Goodyear and are, therefore, purely speculative in nature,” said a Sumitomo statement issued 1 June.

The Japanese tire maker did, however, confirm that the two partners were considering a break-up.

“While it is true that SRI and Goodyear are currently engaged in discussions concerning the possible dissolution of our alliance agreement and our joint ventures, no specific decisions have been made to such effect at this point in time,” the announcement added.

Japanese news agency Nikkei Asian Review reported on 31 May that the two companies had decided to end their 15-year business and capital tie-up.

According to Nikkei, the two companies own joint sales and production ventures in Europe and North America, with Sumitomo Rubber holding 25-percent stakes and Goodyear 75 percent.The former, it said, would take full ownership of the North American businesses, and the latter those in Europe.

Nikkei said that the agreement on the split was likely to be announced as early as this week.

The two companies announced in February 2014 that they were seeking to dissolve the alliance and asked the International Chamber of Commerce (ICC) to arbitrate the dissolution.

Goodyear declined to comment on the reports.