American Tire Corporation to acquire Goodyear's OTR tire plant

In a letter to Goodyear Tire & Rubber Company Board of Directors (www.goodyear.com) dated April 21, 2008, American Tire Corporation (www.americantire.us) proposed acquiring Goodyear's Off-the-Road (OTR) tire plant located in Topeka, Kansas.

Most of the Goodyear brand Off-the-Road (OTR) tires sold in the U.S. are produced in Goodyear's Topeka plant which is Goodyear's largest and oldest OTR tire production facility. American Tire Corporation proposes to acquire this facility in to further expand its OTR tire business.

Under the proposal, ATC is willing to buy out Goodyear's OTR tire plant in Topeka, Kansas at any reasonable price. Built in 1944 by US government, Goodyear's Topeka tire plant is the largest Goodyear OTR tire plant in the world and the only one in North America. Based on a successful acquisition, ATC is going to spend US$200 million to modernize the plant, increase production capacity by at least 20 percent for all sizes of OTR tires, and create more job opportunities with a better annual pay rate.

According to an ATC official, this proposed acquisition will not affect its manufacturing activities in Washington. It is just a further expansion of its OTR tire business.