Titan likely to buy Goodyear farm tyre assets in France

ERJ staff report (TB)

Quincy, Illinois -- Titan International Inc. has agreed to buy certain farm tyre-related assets from Goodyear in Europe, including the Goodyear Dunlop Tires France factory in Amiens, France.

Terms of the deal, which Titan described as “non-binding,” were not disclosed.

Titan said the deal is subject to the satisfactory completion by Goodyear Dunlop of a social plan at the Amiens plant related to consumer tyre activity, along with completion of due diligence, a definitive acquisition agreement and other standard acquisition approval requirements.

“Titan maintains its focus and specialty in the farm and off-the-road wheel and tyre business,” said Titan Chairman and CEO Maurice Taylor Jr. “We hope (Goodyear Dunlop) can come to an expedient arrangement with the Central Works Council in France. If this can be done, the process will move forward.”

Goodyear notified workers at the 49-year-old Amiens plant in May it intends to stop producing passenger and light truck tyres by late 2010 there. The negotiations with the works council are related to that move, which would eliminate more than 800 jobs at the factory.

If completed, the deal would mark Titan's first tyre manufacturing capacity in Europe.

Goodyear has been exploring the sale of its farm tyre businesses in Latin America and Europe/MiddleEast/Africa since May. At the time it termed sales of the units “not material” to its overall revenues.

Goodyear sold its North American farm tyre operation-including a factory in Freeport, Illinois -in 2005 to Titan, which continues to sell Goodyear-brand farm tyres in North America.

Goodyear also has some farm tyre capacity in Europe at plants in Montlucons, France, and Debica, Poland.

Goodyear has a second tyre plant in Amiens, making passenger tyres only, would not be affected by this action. That plant employs about 1000, Goodyear said.

Goodyear opened the farm tyre plant in 1949 and acquired the second plant in 1999 with its purchase of Sumitomo Rubber Industries Ltd.'s Dunlop Tire-related assets in Europe and North America.

From Tire Business (A Crain publication)

Press release from Titan