MANUFACTURING

Goodyear plans to spend up to £655 million annually over the next few years on global development – but is closing its Australian plant as part of its strategy to reduce high-cost manufacturing.

The tyre maker said it would push its high-end tyres in international markets and it sees many opportunities in emerging markets of China, Russia and Brazil.

“We anticipate capital investments totaling between £500 million and £655 million per year from 2008 to 2010,” said chief executive officer Robert Keegan.

Goodyear said it would invest up to £251million in China, £302 million in Brazil and Chile, and £251 million in Germany and Poland.

It also said it would spend £251 million to £352 million to upgrade four US plants over five years.

Goodyear Dunlop at Birmingham’s Ford Dunlop makes specialist tyres for motorcyle racing and motorsport racing and during the last two years there has been heavy investment in plant.

The site makes about 200,000 tyres annually and although low volume they are made by employees with special skills to serve the sport’s sector.

At Wolverhampton the plant makes rubber compound used in tyre manufacturing and it is sent out to Dunlop plants in Europe. Specialist truck tyres are also made at Wolverhampton.

The investments announced by Dunlop are much higher than expected.