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Goodyear to Invest $65 Million in Japanese Joint Venture

19 August 1998

Goodyear to Invest $65 Million in Japanese Joint Venture

    TATSUNO, Japan, Aug. 19 -- The Goodyear Tire & Rubber
Company, Toyo Tire & Rubber Co., Ltd. and Mitsubishi Corporation announced
today that they will invest $65 million (8.5 billion yen) to increase
production capacity of their joint venture Nippon Giant Tire (NGT).
    Simultaneously, Goodyear announced that it has increased its ownership
from 50 to 65 percent in NGT purchasing 15 percent shares of Mitsubishi's
current 20 percent.  Toyo's 30 percent equity remains the same.
    "The production increase will strengthen our position for growth in the
global earthmover and over-the-road tire markets," said Joe Gingo, vice
president of Goodyear's Asia Region.  The investment will be made in Nippon
Giant Tire's radial earthmover tire capacity over the next three years, he
added.
    "This is a tremendous growth opportunity for Goodyear and our partners,"
said Gingo.  "The increase in ownership share and the expansion of production
capacity are both in line with our regional and global strategy of growth in
key markets.  Once again, the ultimate benefactors will be our customers."
    The Nippon Giant Tire joint venture was formed in 1985 to produce radial
earthmover tires.  The first radial tire was produced in 1987, an 11-foot
high, 41-inches wide earthmover tire, the largest tire made by Goodyear
outside of the United States.
    The Goodyear Tire & Rubber Company employs more than 95,000 throughout the
world, and its 1997 sales exceeded $13 billion.