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Goodyear to Build New Tire Plant in Brazil

25 November 1997

Goodyear to Build New Tire Plant in Brazil

    SAO PAULO, Brazil, Nov. 25, -- The Goodyear Tire & Rubber
Company announced today that it will build a new, state-of-the-art tire plant
in Rio Grande do Sul, Brazil.
    The Goodyear tire plant, to be located near a new General Motors
automotive assembly complex being built in the city of Gravatai, in the
southern Brazilian state, will produce passenger tires for the automaker as
well as replacement customers.  Goodyear will provide General Motors do Brasil
with mounted-and-balanced tire assemblies on a just-in-time basis.
    "GM's selection of Goodyear as its sole tire supplier, and its request
that we provide mounted-and-balanced assemblies, demonstrates its confidence
in our associates, our product quality and our manufacturing technology.  This
strengthens the global partnership we have with GM," Goodyear Chairman and CEO
Samir G. Gibara said.
    The auto industry in Brazil -- and in all of Latin America -- is
experiencing rapid growth.  Brazilian auto production is projected to
reach 2.2 million vehicles a year by 2000.
    "This means expanded opportunities for Goodyear in both the original
equipment and replacement tire markets," Gibara said.  "Goodyear is the market
leader in the region and we intend to expand our position with new  products,
improved manufacturing capabilities and efficient distribution."
    In addition to its proximity to the new GM facility, Gibara cited the
area's infrastructure and business focus as key reasons Rio Grande do Sul was
selected as the location for the tire plant.  "Rio Grande do Sul has excellent
roads and communications systems," he said.
    "Rio Grande do Sul is strategically located near the center of the
Mercosur trade region, giving us good access to markets in Argentina, Chile,
Paraguay and Uruguay," Gibara said.  "The new plant is designed to grow with
the market opportunities in these countries."
    Because of its extremely flexible design, the plant can produce a full
range of tires, in various sizes and configurations, from standard speed-rated
tires to high-performance Z-rated tires.
    "Goodyear is an outstanding corporate citizen in Brazil and around the
world," said Antonio Brito, governor of Rio Grande do Sul.  "I am pleased to
welcome the company to the Gravatai area and look forward to future growth."
    Goodyear's initial investment in the facility is expected to be
$60 million (U.S.).  Scheduled to open in 1999, the new plant is designed to
operate on a continuous schedule with approximately 150 associates.
    This investment will bring the company's total capital spending in Brazil
to more than $260 million since 1993.  Goodyear has five manufacturing
operations in the country that employ about 4,500 associates.
    In a recent poll conducted by Exame magazine, Goodyear do Brasil, which
has its headquarters here, was named one of the best companies to work
for in Brazil.
    The number one tire company in Latin America, Goodyear had sales of
$1.7 billion (U.S.) in the region during 1996.  It has more than
10,500 associates in eight countries.

SOURCE  The Goodyear Tire & Rubber Company