The latest stage in Goodyear Tire & Rubber Company’s mission to achieve financial sustainability has led the company to agree to sell its off-the-road tire business to the Yokohama Rubber Company.
The $905 million cash deal, announced by Goodyear, is expected to close by early 2025. The deal will transfer infrastructure that supports surface and underground mining, construction and quarry, and port and industrial end markets. A complete manufacturing transition may take up to five years.
Goodyear, though, will continue to provide off-the-road tires for U.S. military and defense applications.
The deal occurred months after Goodyear announced a transformation plan aimed at better positioning the Akron-based company.
“The sale of the OTR business marks an important milestone as we continue to execute against our Goodyear Forward transformation plan,” said Goodyear CEO Mark Stewart. “We are grateful to our OTR colleagues who have driven the success of the business and are committed to working closely with Yokohama to ensure a smooth transition for customers and associates.”
Yokohama, meanwhile, explained in a press release it expects off-highway tire sales to outpace the consumer tire market approximately three to one.
Earlier this year, Goodyear announced a first quarter net loss of $57 million as the company continued to reimagine its enterprise through overseas plant closures and job elimination.
One of the largest tire manufacturers in the world, Goodyear employs more than 2,000 workers in Akron, its corporate headquarters.
