Goodyear Tire & Rubber has acquired the remaining stake in its Japanese subsidiary, Nippon Giant Tire (NGT) from Toyo Tire & Rubber and Mitsubishi taking full ownership of the unit.
Goodyear Tire & Rubber, which was holding majority stake in the unit since 1985, has acquired the stakes it did not own from the two companies for an undisclosed sum.
Following the acquisition, the company will invest $250m to modernise and expand production to supply OTR tires for its customers and to support growth in the Asia-Pacific region.
Goodyear Tire & Rubber chairman and chief executive officer Richard Kramer said, "This expansion in Japan is aligned to our Strategy Roadmap, as it will enable us to use market-back innovation to grow in one of our targeted market segments, the global OTR business."
According to the company, the number of workers will be increased at facility to nearly 400 following the completion of expansion by 2014.
Goodyear Asia Pacific region president Dan Smytka said, "This investment will enable NGT to manufacture a full line of 57-inch tires, as well as 63-inch tires at a future date."
