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Goodyear Investments Directed Toward Most Efficient Operations

29 March 1999

Goodyear Investments Directed Toward Most Efficient Operations

    AKRON, Ohio, March 29 -- A recent expansion announcement by
The Goodyear Tire & Rubber Company in Valleyfield, Quebec, confirms its key
strategic initiative to maximize utilization of its most cost efficient supply
sources to advance the company's competitive position.
    "Goodyear is a global company with 86 facilities in 31 countries," said
Goodyear Chairman and CEO Sam Gibara.  "Competition for global capital
investment dollars is intense and Goodyear's investment plans have been
adjusted downward to reflect weakened economies in emerging markets.  Only the
most efficient facilities will qualify for new investment, and we will not add
capacity beyond market growth."
    "We are committed to meet our customers needs for quality products," said
Gibara.  "However, we will do this strategically through continuous global
modernization and rationalization of our North American manufacturing
facilities."
    As part of the production rationalization plan revealed by Gibara in
February, the company announced the investment last week in Valleyfield.  That
plant meets all of Goodyear's investment requirements including an extremely
productive workforce, flexible scheduling and a low-cost base.
    This $57 million expansion also focuses on the company's need to ensure
that cost competitive capacity is available to meet the surging demand for
light truck tires in North America.  The Valleyfield expansion will come on
line in 2001.
    "We will continue to build on our growing rationalization efforts to
produce tires where we can make them most efficiently, meeting the needs of
our customers, associates and shareholders," Gibara added.