The Goodyear Tire & Rubber Company has agreed to sell its global wire business to Hyosung Corporation, a multinational corporation with substantial tire reinforcement operations, for $50 million.
The business manufactures tire reinforcement wire in Asheboro, North Carolina, and Colmar-Berg, Luxembourg, employing around 600 people.
Goodyear and Hyosung will also sign a multi-year supply agreement upon closing, which is expected to occur in the third quarter of 2011.
"This transaction reinforces our focus on providing innovative consumer and commercial tires in targeted market segments," said Richard J. Kramer, Goodyear chairman and chief executive officer.
"Our wire plant associates manufacture outstanding products that have greatly contributed to the quality of Goodyear tires. We thank them for these contributions," he said.
Hyosung, headquartered in Seoul, South Korea, has produced tire reinforcements since 1968. It has tire reinforcement operations in South Korea as well as in Brazil, China, Luxembourg, Vietnam and the United States. Goodyear sold its global tire fabric operations to Hyosung in 2006.
