Port Elizabeth - Goodyear South Africa announced on Tuesday it will invest R670m to increase production of high-value-added (HVA) consumer tyres at its Uitenhage manufacturing plant to drive profitable growth and meet market demands.
The investment plan would see the introduction of state-of-the-art manufacturing technology for the plant and will enable Goodyear to meet the strong and growing market demand for HVA consumer tyres in South Africa and Sub-Sahara Africa. The tyre market in South Africa and sub-Sahara Africa is expected to experience double-digit growth through 2020 led by the consumer segment.
“This is an important investment by Goodyear and is consistent with our strategy to serve the needs of our customers and the company’s focus to invest in high return projects that drive profitable growth,” said Jean-Jacques Wiroth, managing director of Goodyear SA.
The new technology and accompanying comprehensive employee training will further improve the plant’s capability and capacity to produce Low Rolling Resistance tyres that promote fuel economy in vehicles to meet the growing demand from vehicle manufacturers and the replacement market, as well as meet the increase in market requirements for HVA 4X4 SUV tyres.
Subject to consultation, the company expects to be substantially complete with the investment plans by the end of 2016 or early 2017. The company does not anticipate disruption to tyre services or supply during this period.