Goodyear expects to build future tire plant outside Ohio - Cleveland 19 News Cleveland, OH

Goodyear expects to build future tire plant outside Ohio

Goodyear says it is committed to keep its global headquarters, largest Innovation Center and North American business headquarters in Akron. (Source: MGN) Goodyear says it is committed to keep its global headquarters, largest Innovation Center and North American business headquarters in Akron. (Source: MGN)
AKRON, OH (WOIO) -

After many discussions with Goodyear over the past several weeks regarding the location of Goodyear's future tire factory, Akron Mayor Don Plusquellic and Summit County Executive Russ Pry received a letter on Tuesday from Goodyear, stating it has removed Ohio from consideration.

The letter, written by Laura Thompson, executive vice president and chief financial officer, listed various factors in the decision, including logistics, labor costs and access to a deep-sea port. As a result, the company feels it needs to remove the state from discussion. According to the company's analysis, locating in Ohio would add more than $50 million in costs annually, compared to other locations.

"A strong Goodyear is good for Ohio and we believe the best way we can support Ohio's economy is to make decisions that keep Goodyear winning in a highly competitive global environment," Thompson wrote.


Click here to read the full letter.


"After discussing the matter with Rich Kramer, I am saddened but I realize that it is not economical to ship millions of tires from Ohio to Latin America, where Goodyear's growth in sales is occurring," said Mayor Plusquellic. "I appreciate Goodyear's willingness to consider our joint efforts to land this major investment, and further appreciate the continuing relationship between Summit County, the state of Ohio, the Greater Akron Chamber, and everyone who tried to make this happen. We will continue to communicate with Goodyear to take advantage of every opportunity to add jobs in Akron."

It could have meant 1,000 new jobs and millions of dollars for the local economy, but city officials remain realistic on the decision.

"Saddened for the people here who could have potentially had those jobs. But I also know the business world. It's a global competition and their growth in the tire market right now is in Latin America," the mayor said.

"While this is obviously not the decision that anyone in northeast Ohio had hoped for, and I am personally disappointed, I understand Goodyear's business rationale," said Pry. "Keeping Goodyear's headquarters operation strong and viable in this community is important to our overall economy."

Plusquellic admitted the city did not have enough room for the large facility, which was estimated to be a $500 million investment.

"We don't have 300 vacant acres in Akron," said the mayor.

Around 3,000 Ohioans are employed with Goodyear, which says it is committed to keep its global headquarters, largest Innovation Center and North American business headquarters in Akron. 

According to the letter, Goodyear expects a final decision some time in early 2015.

Stay with us for more on this developing story.

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