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Goodyear to inflate passenger car tire production capacity in China

China: Goodyear is planning to expand its production capacity of passenger cars tire at its Dalian plant in China. The project is scheduled to start in 2016 and will be completed over a five-year horizon with an increase of three million units in total output.

This investment is a part of long term strategy of the company to meet the growing demand of high-value added tires in China and other Asia-Pacific markets. The USD284 million project is expected to create approximately 250 jobs, when put into full operation.

The plant has been in operation since 2012, when Goodyear was forced to relocate its plant from location within Dalian city to the Pulandian Gulf Industrial Zone, as the earlier location was not having any further room for expansion.

Goodyear is active in the region since 1994, when it acquired majority share of Dalian General Rubber Factory. The factory already has an annual manufacturing capacity of 10 million units of passenger car tires and half million truck tires.

According to a recent report published by TechSci Research, “China Tyre Market Forecast and Opportunities, 2020”, tire market in China is forecast to increase at over 11% CAGR during 2015-20. Increasing automobile sales, continuously expanding motor vehicle fleet, increasing exports, ongoing developments in road infrastructure coupled with innovations in tire technology are the major factors driving growth in tire market. Segment wise, passenger car tires remain the most dominant market segment followed by two-wheeler tire and commercial vehicle tire segment in that order. In 2014, replacement and OEM segment held almost equal share in China tire market.

As per TechSci Research, Goodyear’s expansion for passenger car tire in China is anticipated to increase company’s share in passenger car segment in China.

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