Akron, Ohio, US-based tire producer Goodyear Tire & Rubber Company has announced it has agreed to sell its global wire business to South Korea's Hyosung Corporation, pending government and regulatory approvals and other customary closing conditions.
Goodyear and its affiliates will receive approximately $50 million for the business, subject to post-closing adjustments. The business, which manufactures tire reinforcement wire in Asheboro, North Carolina, US, and in Colmar-Berg, Luxembourg, employs about 600 people.
In conjunction with the sale, the two companies have inked a long-term contract for the supply of steel reinforcement wire, valued at $1.8 billion.
Hyosung, headquartered in Seoul, South Korea, has produced tire reinforcement wire since 1968. It has tire reinforcement operations in South Korea as well as in Brazil, China, Luxembourg, Vietnam and the United States.