Goodyear proposes Truck Tire Expansion to Tire Company Dębica S.A.
The Goodyear Tire & Rubber Company today announced that it will ask the Polish tire company Dębica S.A. to triple its commercial tire production for Goodyear, from 1,700 to 5,000 per day, to meet the increasing demand for technically advanced, high-quality commercial truck tires in Europe.
Warsaw, 26th February 2008 - The Goodyear Tire & Rubber Company today announced that it will ask the Polish tire company Dębica S.A. to triple its commercial tire production for Goodyear, from 1,700 to 5,000 per day, to meet the increasing demand for technically advanced, high-quality commercial truck tires in Europe.
Tire Company Dębica S.A.’s management board will decide whether to make the necessary investment to expand production there. Goodyear estimates that the expansion would require an investment of more than $200 million. The investment, which would likely involve assistance from Polish national and regional authorities, would create 350 to 400 new jobs at Tire Company Dębica S.A.
“This additional capacity would make Tire Company Dębica S.A. one of our largest suppliers of tires in the world," said Michel Rzonzef, President of Goodyear in Eastern Europe, the Middle East and Africa. “Goodyear, of course, will share the necessary technology and expertise to ensure that Tire Company Dębica S.A. is producing the highest-quality, and most advanced, commercial truck tires possible” added Mr. Rzonzef.
The expansion, if approved, would be made adjacent to the existing factory in Dębica, located in southern Poland. Tire Company Dębica S.A. currently employs 2,700 people at the plant. The majority of the tires currently produced at the plant are sold to Goodyear or Goodyear affiliates, and are sold under the Goodyear, Dębica, Dunlop, Fulda and Sava brands.
Previously, Tire Company Dębica S.A. and Goodyear announced in April 2007 a more limited proposal to increase truck tire production at Dębica with a US$ 8.5 million investment. That project is continuing and will be in addition to the expansion plans announced today.
“In a period of 13 years, our co-operation with Tire Company Dębica S.A. has been highly beneficial for both parties. This request for production enhancement clearly shows that our commitment in Dębica is long-term,” said Michel Rzonzef. “Assuming that the project will be accepted by the Company’s Management Board and that activities will be undertaken in the Mielec Special Economic Zone at Dębica, we expect that it will have an enormous impact both on our companies and on the Dębica community for many years to come,” added Mr. Rzonzef.
