AKRON, Ohio — Goodyear announced Monday that it will sell its off-road tire business to Yokohama Rubber for $905 million.
Goodyear announced the sale Monday morning. Goodyear’s off-road division makes tires for large vehicles in the mining and construction industries. These tires are made to travel over rock and gravel and are about 8 to 13 feet in diameter.
Yokohama was founded in 1917 and is headquartered in Japan, but has US factories in Salem, Virginia and West Point, Mississippi.
Goodyear said the sale is expected to close in early 2025. The company said it would use proceeds from the sale to fund “Goodyear Forward,” a plan announced in November to transform the tire company into a more profitable business.
“The sale of our OTR (Off-the-Road) business marks an important milestone in the continued execution of our Goodyear Forward transformation plan,” said Goodyear CEO and president Mark Stewart. “We are grateful to our OTR colleagues for driving the success of this business and are committed to working closely with Yokohama to ensure a smooth transition for our customers and employees.”
Goodyear will continue to produce tires for the U.S. military and other defense applications, and will also continue to make tires for Yokohama for up to five years after the sale closes.
According to financial documents filed with the SEC, the sale includes Goodyear’s manufacturing facility in Tatsuno, Japan, and a retread plant in North Bay, Canada.
It is unclear how many employees will be affected. Cleveland.com has reached out to Goodyear for comment.
Announced in November, Goodyear Forward is a plan to reform the tire company following the appointment of activist investor Elliott Management to the company’s board of directors. Goodyear Forward was announced the same day that former Goodyear CEO Richard Kramer announced his retirement.
One of the aims of the plan was to sell its off-road business. The company said it would also explore the possibility of selling its Dunlop brand and specialty chemicals business.
Goodyear began its off-road business in 1934 when it introduced its first construction equipment tires, according to its website.
Sean McDonnell is a business reporter for cleveland.com and the Plain Dealer. He can be reached at smcdonnell@cleveland.com.
