The global tire technology leader, American Goodyear Tire & Rubber Company, announced today that it has initiated nearly $500 million as an initial investment to relocate its factory in Shahekou District, Dalian to the Dalian Pulandian. The new factory built after the relocation will use the most advanced technology equipment in the world.
In view of the fact that the Shahekou plant is adjacent to the residential area, which has severely restricted the expansion of its production scale, Goodyear decided that after the completion of the new factory by the end of 2010, it would begin to shift production to the new plant one after another. All relocations will be completely completed in 2012, and the Shahekou plant will be completely closed. The land will be converted to non-industrial sites.
Robert Zigen, chairman and chief executive officer of Goodyear, said that we plan that by 2012, half of Goodyear's global production capacity will come from a region with a cost-competitive advantage. China's sound investment environment has provided us with a powerful platform for the smooth realization of this commercial goal.
In order to ensure that Goodyear continues to grow in China, the world's largest commercial vehicle market, the new plant will introduce the world's most cutting-edge commercial tire technology and assume the task of producing commercial vehicle tires. At the same time, the new plant will also upgrade Goodyear's production capacity for high-value passenger car tires to better meet the demand for tires in the supporting and retail markets brought about by the rapid sales momentum of new cars in China.