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Goodyear and Sava Finalize Joint Ventures

10 December 1997

Goodyear and Sava Finalize Joint Ventures

    KRANJ, Slovenia, Dec. 10 -- Goodyear and the Sava Group of
Kranj, Slovenia, today finalized their tire and engineered products joint
venture agreements that were announced in May.
    Goodyear has a 60 percent stake in the tire joint venture and 75 percent
in the engineered products joint venture.  The combined investments total
$120 million.
    "This partnership will strengthen our growing position in the western
European markets and the emerging markets of central Europe," said Sam Gibara,
Goodyear chairman, chief executive officer and president.
    Sava reported total sales of about $245 million in 1996; of that,
$177 million were for car and commercial truck tires.  The company has about
3,600 employees.
    "Sava is a well-respected company with strong product lines that are
marketed across Europe," Gibara said.  "Its location in central Europe makes
it an ideal source for products to be marketed in this expanding region."
    The joint ventures will produce passenger and light truck tires and
engineered rubber products such as air springs, power transmission products
and automotive hose.
    "This is our first engineered products manufacturing site in continental
Europe," Gibara said.  "It will enable us to manufacture and sell these
products in a variety of markets, including the rapidly growing automotive
manufacturing segment in eastern and western Europe."
    Janez Bohoric, president of the Sava board, said:  "Joining the Goodyear
family will enable us to achieve faster growth and give us access to the
world's best technology and to global markets.  It will also mean higher
security for our employees, more promising possibilities for recruitment and
the opportunity to strengthen the Sava brand in other markets."
    Bohoric added that within the next 10 years, the Sava joint venture with
Goodyear would be producing annually 8 million passenger tires and half a
million light truck tires -- double its current output.
    Sava tire products will continue to be marketed in Slovenia and western
Europe.  Engineered products will be sold as the Goodyear brand in the
automotive original equipment market.  Sales and marketing for the engineered
products joint venture will be based at Goodyear's European headquarters for
engineered products in Wilrijk, Belgium.
    The Sava acquisition is Goodyear's second major move in Europe in the past
two years; in early 1996, the company acquired a majority stake in the
operations of TC Debica, a Polish tire company.
    A year ago, Goodyear purchased 60 percent of Contred, a South African tire
and rubber products manufacturer.  Recent engineered rubber products
acquisitions have been made in North America, Asia and Latin America; a tire
plant was purchased in the Philippines; a retread rubber manufacturing plant
was acquired in the U.S.; and tire off-take and testing agreements were
reached with Japan's Sumitomo Rubber Industries.
    "These developments fit perfectly with our goal to ensure fast and
profitable growth in all our core business, whether in tires, engineered
products or chemicals," Gibara said.  "It is essential that we hold a No. 1 or
No. 2 position in each of the industries and each of the markets in which we
participate."

SOURCE  Goodyear Tire & Rubber Company