Goodyear may invest up to $125 million in Alabama plant

Akron, Ohio - Local tax abatements were approved recently for a proposed $125 million investment in Goodyear's Gadsden, Alabama, plant though the tyre maker has not yet formally decided to go ahead with the investment.

A Goodyear spokeswoman said the funds would be used for new equipment and other items to modernise the facility. She added that the firm has not yet announced any specific investments that are part of the contract with the United Steelworkers (USW), which calls for investments of $550 million in union-represented plants through the life of the contract.

The Akron-based tsre maker proposed $125 million in an application for the tax abatements.

“The potential tax abatement was approved in April, and discussions are progressing,” the spokeswoman said.

The Gadsden plant is covered by the US master contract with the USW and was involved in last year's three-month strike against Goodyear.

From Tire Business (A Crain publication)