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Goodyear to Build New Engineered Products Plant in Mexico

8 December 1997

AKRON, Ohio, Dec. 8 -- Goodyear Engineered Products announced
plans today to invest more than $15 million to build a new power transmission
products manufacturing facility in Northern Mexico.

The exact location for the new plant has not been determined.

The company plans to break ground in the second quarter of 1998 and begin
production by mid-year of 1999.

"Building this new plant reinforces our goal to be the global leader in
the supply of power transmission products for the transportation and
industrial markets," said Terry Persinger, vice president and general manager
of the company's Engineered Products business group.  "This decision
strengthens one of our core businesses and allows us to compete globally with
other companies, using their advantage of lower-cost manufacturing to grow
their share of the market."

The products to be produced at the new facility are currently manufactured
at Goodyear's Lincoln, Neb., plant, the company's largest PTP manufacturing
facility.  The company will be able to improve the product's manufacturing
cost at the new plant.

"The Lincoln plant will supply rubber, cord and fabric to the new facility
as well as technical support," said Harold Smith, director of product supply
for Goodyear's Engineered Products business group.  "The new plant will help
protect existing business as well as provide a competitive cost structure to
expand our PTP business globally."

While the shift in production may affect about 150 jobs at the plant over
the next three years, Smith said many of the job losses will be absorbed
through attrition.

Power transmission products aid in transferring power between drive shafts
and drive surfaces in transportation and industrial engines and systems.
Products in the system include belts, bushings, pulleys, sprockets, bearings,
idlers and bands.

SOURCE  Goodyear Tire & Rubber Company