Goodyear to pursue ‘strategic alternatives’ for chemical business; CEO to step down

HOUSTON (ICIS)–Goodyear has decided to “actively pursue strategic alternatives” for its chemical business, its Dunlop brand and its off-the-road equipment tyre business, the US tyre major said on Wednesday.

While Goodyear buys petrochemical-based and other raw materials, it also manufactures and sells rubber-related chemicals for various applications.

The company’s manufacturing operations in the Americas includes four chemical plants, according to information on its website.

The decision to pursue alternatives for the chemical and the other businesses is part of a “Goodyear Forward” transformation plan that aims to achieve gross proceeds of more than $2bn from portfolio optimisation, the company said.

With the transformation plan, the company aims to optimise its portfolio, deliver significant margin expansion and reduce leverage to drive sustainable and substantial shareholder value creation, it said.

“Our transformation plan represents a clear path to create a more profitable and focused Goodyear,” said chairman, CEO and president Richard Kramer.

Kramer, who has led Goodyear for the last 14 years, will retire next year, the company announced.

Goodyear’s board has retained an executive search firm to help find his successor.