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Goodyear Announces $120 Million Expansion in China

AKRON, Ohio, Dec. 19 -- Goodyear has announced a $120 million expansion of its tire plant in Dalian, China, with the intention of further strengthening its leadership position in the rapidly expanding high performance consumer tire segment of the market.

Over a five year period Goodyear Dalian will nearly triple its current annual capacity of 1.9 million tires to more than 5.3 million tires to meet the increasing demand in both the replacement and original equipment markets in China.

Goodyear was the first major tire manufacturer to establish a presence in China when in 1994 it formed a joint venture with the Dalian Rubber General Factory.

Currently Goodyear Dalian supplies high performance tires to many leading automakers including VW, Audi, General Motors and Citroen. The company also has a significant market share in all radial passenger tire segments and in the growing 4x4 market.

Goodyear's nationwide retail distribution network of tire outlets is expected to expand from 1600 to more than 2100 by 2005. Goodyear has recently introduced its premium ``Eagle Store'' format, which offers a superior level of car care service, as well as high quality Goodyear products.

Hugh Pace, President Goodyear Asia, said: ``In China we have built a strong business relationship and have received excellent cooperation from both our local partners and Chinese government authorities. Because of this solid relationship, we are continuing to invest in China to meet the market demands for top quality high performance tires.''

Pace further stated, ``Auto makers in China are producing world class vehicles. They need tires that incorporate high levels of technology, like the Goodyear brand tires made in China.''

Pace added, ``Goodyear is well poised to continue its growth in the China market which is clearly destined to be one of the world's biggest long-term business opportunities.''