Goodyear Provides Update on Thailand Flooding

Company Works to Reduce Impact of Natural Disaster on Global Aviation Tire Business

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Dec 09, 2011, 04:30 ET

AKRON, Ohio, Dec 9, 2011 /PRNewswire/ -- Since October 2011, when severe flooding in Thailand began to affect its operations, The Goodyear Tire & Rubber Company (NYSE: GT) has been in regular communication with its commercial airline customers regarding a potential global shortage of bias aviation tires that it now has determined may begin affecting the commercial airline industry in February or March 2012.

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This situation is a result of the catastrophic flood in Thailand in October that disabled many manufacturing operations in that country, including Goodyear's main aviation tire manufacturing facility in Bangkok. The floodwaters that idled Goodyear's plant finally receded during the last week of November, allowing the company to make an assessment of the damage and to get a clearer understanding of the impact on the global aviation tire business.

In response to the flood, Goodyear has increased its production of aviation tires in its other facilities and is pursuing other viable sources of tire supply for its customers. Goodyear will never compromise on the quality of its products and is confident in the high quality of the tires it obtains from these qualified sources.

Goodyear's ongoing recovery response includes:

Regular contact with its customers to keep them apprised of the situation as more information becomes known;
Seeking assistance from other aircraft tire manufacturers to respond to an industry-wide concern. As this extreme natural disaster affects the global commercial airline industry, Goodyear is asking other aviation tire manufacturers to help mitigate potential supply disruptions;
Seeking assistance and support from its suppliers, governments and regulatory agencies to enable the fastest possible return of full supply of global aviation tires in addition to restoring full production at Goodyear's Bangkok facility as quickly as possible;
Increasing production at its other aircraft tire facilities – new tire manufacturing in Danville, Va., and retread production in Stockbridge, Ga., Kingman, Ariz., and Tilburg, Netherlands;
Reminding aircraft operators to follow recommended tire care and maintenance procedures to safely ensure maximum tire performance and maximize tire life;
Working around the clock to bring its Thailand manufacturing facility back to full production as soon as possible. The re-start will be subject to equipment status, availability of materials, ability to ship product and materials in and out of Thailand, and other factors yet unknown.

Goodyear will provide further updates as conditions warrant.

Goodyear is one of the world's largest tire companies. It employs approximately 73,000 people and manufactures its products in 54 facilities in 22 countries around the world. For more information about Goodyear and its products, go to www.goodyear.com/corporate.

SOURCE The Goodyear Tire & Rubber Company