Goodyear exits bulk of chemical operations in strategic shift
Goodyear Tire & Rubber Company has agreed to sell the majority of its Chemical business to private equity firm Gemspring Capital, in a move that marks a significant phase of its ongoing "Goodyear Forward" transformation initiative. The $650 million transaction, subject to regulatory approvals, is designed to streamline operations, reduce debt, and refocus resources on core tyre manufacturing.
The transaction will see Gemspring acquire Goodyear Chemical’s facilities in Houston and Beaumont, Texas, along with a research office in Akron, Ohio. These assets are known for producing synthetic rubber and supplying a wide range of automotive aftermarket, industrial, and consumer applications.
Goodyear will maintain ownership of its Chemical operations in Niagara Falls, New York, and Bayport, Texas, retaining rights to the products manufactured there. A long-term supply agreement between the companies will preserve continuity for existing customers.
The sale will generate approximately $650 million in cash at closing, pending post-deal adjustments. Goodyear plans to use the proceeds to reduce financial leverage and support projects aligned with its transformation strategy, which prioritises operational efficiency and profitability across its global footprint.
Mark Stewart, Goodyear’s CEO and President, stated the move "demonstrates our commitment to optimising our portfolio and creating shareholder value." The company also confirmed it will collaborate with Gemspring to ensure a smooth transition for employees and stakeholders involved in the deal.
Once finalised, the transaction will shift the majority of Goodyear’s chemical operations to Gemspring’s management, although the company will retain certain production capabilities essential to its core tyre business. The divestment reflects a broader industry trend of tyre makers streamlining non-core assets to focus on advanced tyre technologies, especially those tailored to electric vehicles and sustainability demands.
Goodyear's decision to offload much of its Chemical division signals a sharpened focus on its tyre manufacturing capabilities amid a shifting automotive landscape. As demand for EV-specific and sustainable tyre solutions grows, reallocating resources from chemical production to core innovation may enhance agility and long-term competitiveness. This type of strategic divestment is increasingly common as legacy players pivot to meet future mobility needs.
Tagged with: Goodyear, Gemspring Capital, synthetic rubber, chemical business divestment, tyre industry transformation, Goodyear Forward, tyre manufacturing strategy
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