Goodyear: Materials costs to be flat

By Dave Hannon -- Purchasing, 2/21/2007 7:35:00 AM

After seeing a 17% increase in materials costs in 2006, tire maker Goodyear Tire & Rubber Co. says its raw materials costs should be flat in 2007. The 17% cost increase in 2006 amounted to approximately $869 million for the company. Natural rubber, synthetic rubber, carbon black, fabrics, steel cord and other materials make up about 35% of tire costs.

Goodyear said as part of its previously announced a restructuring plan, the company plans to expand overseas production and materials procurement. Last month, the company said it expects to complete the closing of its tire plant in Tyler, Texas in the first quarter of 2008 and switch from tire production to materials mixing operations at its plant in Valleyfield, Quebec by the end of the second quarter of 2007.

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