Goodyear’s Alabama Expansion on Track - Tire Review Magazine

Goodyear’s Alabama Expansion on Track

(Gadsden (Ala.) Times) The modernization of the Goodyear Tire & Rubber Co. plant here is about one third complete, plant manager Jim Davis said.

The plant began in March producing tires on new equipment in the 205,000-square-foot expansion. Production started ahead of schedule, Davis said.

The expansion is to be completed in 2010. The company had a groundbreaking ceremony in September.

Davis said about one third of the new equipment has been installed. The project is on schedule, and employees are being trained on the equipment.

Because of the expansion, the plant will be able to produce all of Goodyear’s passenger and light-truck radial tire lines.

The plant now can produce tires with a diameter up to 17 inches. The modernization project will give the plant the capability to produce up to 24-inch diameter tires.

The plant now produces Wrangler tires featuring SilentArmor technology and plans to start production of the Fortera tire line featuring SilentArmor technology as a result of the modernization.

Davis and company officials have said the modernization will not necessarily add jobs but will save existing jobs. Davis said this week he does not anticipate any new jobs from the project but said the company has been actively hiring to fill jobs vacated through retirement and attrition.

Davis said since January 2007, the plant has hired 495 new employees, both hourly and salaried. The plant now employs about 1,500, a net gain of about 200.

Some of the employees were hired because of increased tire production and some were needed because of the transition to the new equipment.

“We’re probably at about our peak employment level given today’s ticket level and everything considering what’s going on,” Davis said.

The company has filed for tax abatements of $125 million with the city of Gadsden for capital improvements at the plant. Davis said that is the “minimum” that will be invested here during three years.

And Davis said there is a “possibility” more money could be invested.

“Goodyear will invest in plants where it can get its best return,” Davis said.

He said those decisions will be based on a number of factors, including market trends, plant performances and state and local support.

Asked if he is optimistic about Gadsden luring additional investment, Davis said, “I’m optimistic for success on this project in our plant, and I’m always optimistic that our performance will draw additional investment, but someone else makes that decision.”

Modernization is taking place throughout the plant, not just in the new section.

The state committed about $30 million in incentives and training assistance for the project, but the company has not received any funds from the state, Davis said.

“Goodyear and the other parties are actively working to finalize the details of the various required agreements,” Davis said. (Tire Review/Akron)

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