American Tire Corporation Proposes Acquisition of Goodyear’s OTR Tire Plant

Most of the Goodyear brand OTR tires sold in the U.S. are produced in Goodyear’s Topeka plant which is Goodyear’s largest and oldest OTR tire production facility with 69 acres under roof. American Tire Corporation proposes to acquire this facility in an official letter dated April 21, 2008 to further expand its OTR tire business.

Chino, California – Monday, April 21, 2008 – In a proposed letter to Goodyear Tire & Rubber Company Board of Directors dated April 21, 2008, American Tire Corporation (ATC) is planning to acquire Goodyear’s OTR tire plant located in Topeka, Kansas.

Under the proposal, ATC is going to buy out Goodyear’s OTR tire plant in Topeka, Kansas at any reasonable price. Built in 1944 by US government, Goodyear’s Topeka tire plant is the largest Goodyear OTR tire plant in the world and the only one in North America. Based on a successful acquisition, ATC is going to spend US$200 million to modernize this old OTR tire plant, increase at least 20% production capacity for all sizes of OTR tires, and create more job opportunities with a better annul pay in the state of Kansas.

According to ATC’s official, this proposed acquisition will not affect its manufacturing activities in Washington. It is just, beyond its Washington facility, a further expansion of its OTR tire business. If this acquisition is success, this Goodyear OTR tire facility will, as a complement to ATC Washington’s capacity, be modernized by the most advanced technology and sufficient investment. Both production capacity and efficiency will be increased. Meanwhile, its product quality will be improved to the top level in the OTR tire industry.

With the objective to become the largest and best manufacturer for 63″ and 57″ tires, American Tire Corporation is a well-established OTR tire manufacturer which has had several “firsts” in the OTR tire industry. For more information, please check its website http://www.americantire.us.