Goodyear Tire & Rubber has confirmed plans to construct a new tire factory in San Luis Potosi, Mexico with an investment of up to $550m.
The project is part of the company's strategy to serve demand for high-value-added (HVA) consumer tires in North America and Latin America. It will complement the company's existing factories in the US and Canada.
Planned to begin production in mid-2017, the factory is expected to produce six million tires a year, and employ about 1,000 people.
Goodyear Tire & Rubber chief executive officer Richard Kramer said: "Our new factory will provide us with a world-class manufacturing asset and will be a strong complement to our existing plants in North America and Latin America.
"The new plant advances our strategy to serve the needs of our customers and is consistent with our focus on investing in high return projects that drive profitable growth."
Between 2014 and 2019, demand for HVA tires in Americas is estimated to increase by 10 million tires a year, the company said.
The decision to build the plant in San Luis Potosi follows a review of potential locations considering cost structure, logistics, infrastructure, skilled workforce, tariffs and quality-of-life issues.
According to Goodyear Tire & Rubber, the facility will utilize natural gas, energy efficient LED lighting and dust collection equipment, and will a zero-waste-to-landfill and zero-solvent plant.
Image: The new facility is expected to produce six million tires a year. Photo: courtesy of he Goodyear Tire & Rubber Company.
