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Goodyear may increase sourcing from China to reach cost-cutting targets

Ally From www.gasgoo.com| April 12 , 2007

Goodyear Tire &Rubber Company is actively making plan to increase sourcing from China to save more costs.

The chief executive of tire-maker Goodyear, Robert Keegan, said at the company's annual general meeting (AGM) on April 10 that the company is set to increase the amount of raw materials, equipment and tires that it sources from China in the coming two years, from US$200-million-worth in 2006, which saved the company around US$35 million. Meanwhile, Goodyear spokesman told reporters that Goodyear aims only to enlarge purchase quantities from Asia but will not expand production here. Asia providers will be asked to produce tires according to Goodyear's requirements and the cheap original equipment and sources are effective channels for the company to cut costs.

Goodyear also promised to boost production to meet with global requirements and continue to seek low-cost first-tier suppliers worldwide. The company said that current savings were made through a plant closure in Tyler (Texas) as well as other plants closed in England, New Zealand and Morocco, but no detailed information regard the matter were disclosed on the meeting.

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