Goodyear Takes Control Of Satl

Goodyear Tyre & Rubber Company of the US has acquired control over South Asia Tyres Ltd by acquiring 50 per cent equity in it from RPG-CEAT. The FIPB had approved the move sometime ago. "With the acquisition, Goodyear along with its Indian subsidiary, Goodyear India Ltd, now has complete management control of the company with its plant at Aurangabad," Goodyear India said here yesterday.

Under the terms of agreement reached with RPG-Ceat, Goodyear will continue to supply Ceat radial passenger, earthmover and two and three-wheeler tyres. The acquisition is part of Goodyear's global strategy for leadership in Asian markets. Goodyear India mainly manufactures its radial tyre range at the Aurangabad plant supported by continued manufacture of bias tyres from the plant at Ballabgarh in Haryana. The acquisition was made after obtaining approvals from the Foreign Investment Promotion Board (FIPB) and the Reserve Bank of India (RBI), a statement by Goodyear said.

 

Neville P Moos, the India-born chairman & managing director of Goodyear India Ltd, says: "We have great respect for the RPG Group and the Goenka family and look forward to a warm, continued association with Ceat as one of four major customers. This new phase of our relationship allows us to enhance our focus in areas of specific interest to both parties." Goodyear India mainly manufactures its radial tyre range at the Aurangabad plant, set up with an investment of $134 million, supported by the manufacture of bias tyres from the plant at Ballabgarh near Delhi. The Aurangabad plant was set up in 1996 with technology provided by Goodyear. The plant now has an annual production capacity of over three million tyres. Goodyear plans to further increase the range and capacities of this plant to meet the growing needs of radial tyres, both, in domestic and export markets, the statement said.