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Goodyear Expands Elastomer Capacity

22 October 1997

Goodyear Expands Elastomer Capacity

    AKRON, Ohio, Oct. 22 -- Goodyear will strengthen its world
leadership position as a developer and supplier of synthetic rubber and
polymers to the global tire and rubber industry with an investment of
$600 million over the next six years, company officials announced today.
    Goodyear Chairman Sam Gibara said the investment -- to include two plants,
expansion of existing facilities and the implementation of new technologies --
is consistent with the company's strategy to be the lowest cost producer of
technically innovative high quality products.
    "This planned investment by the Chemical Division will give Goodyear's
tire and rubber products businesses competitive advantages through integrated
access to the most technically advanced polymers available, as well as provide
Goodyear Chemicals with external growth opportunities in the merchant
polymer markets," Gibara said.
    Dennis Dick, vice president and general manager of Goodyear Chemicals,
said engineering designs are underway for two flexible solution polymer plants
to be constructed in North America and Europe.
    "The new facilities, whose locations have not been finalized, will be
adaptable to changing industry needs and requirements," Dick said, "and will
produce a wide variety of solution elastomers."
    In addition, an expansion of the company's Beaumont, Texas, chemical plant
scheduled for completion in 1999 will provide additional annual capacity for
18,200 metric tons of Goodyear Natsyn, a synthetic rubber that nearly
duplicates the molecular structure of tree-grown rubber.
    "We are a market leader in quality, innovation and service and are
constantly improving productivity and competitiveness with world-class
facilities that provide a wide range of products," Dick said.
    The specialty polymer market is increasing 6 percent annually to meet more
demanding rubber-compound performance requirements.  In comparison, the total
synthetic rubber market is increasing 2 percent annually, Dick said.
    In addition to Beaumont, Goodyear chemical plants are located in Akron,
Ohio; Calhoun, Ga.; Niagara Falls, N.Y.; Houston and Bayport, Texas; and
Le Havre, France.
    Goodyear Chemicals provides synthetic rubber and chemicals to tire and
rubber product manufacturers as well as makers of adhesive tapes and bandages,
golf and tennis balls, paints and sealants, latex gloves, carpets, foam
products, shoes, toys and chemicals.

SOURCE  The Goodyear Tire & Rubber Company