News
October 2, 2015
Dissolution of the Alliance Agreement and Joint Ventures with The Goodyear Tire & Rubber Company
Sumitomo Rubber Industries, Ltd. made an announcement on June 4, 2015 regarding the agreement to dissolve the alliance and joint ventures with The Goodyear Tire & Rubber Company
Sumitomo Rubber Industries, Ltd. (Chief Executive Officer and President: Ikuji Ikeda / hereinafter, "SRI") made an announcement on June 4, 2015 regarding the agreement to dissolve the alliance and joint ventures with The Goodyear Tire & Rubber Company (Location: Ohio, USA, Chairman of the Board / Chief Executive Officer and President: Richard J. Kramer; hereinafter, "Goodyear"). As of October 1st (US Time), 2015, SRI completed all the necessary procedures regarding the dissolution of the alliance and joint ventures with Goodyear.
As a result of this dissolution of the alliance agreement and joint ventures with Goodyear, SRI will expand its management flexibility in both (1) branding strategy and (2) business operations in each region.
For the branding strategy, SRI will further strengthen its global operations by addressing customers’ various needs by utilizing both the Dunlop brand, which is recognized globally for its high quality premium tires with high fuel efficiency, and the Falken brand, which is highly rated for its high quality tires in motor sports mainly in Europe and North America.
For the business operations in each region, (1) in North America, SRI will be able to strengthen its competitiveness by expanding its OE tire business for Japanese OE makers and its motorcycle tire business. In addition, SRI will be able to own manufacturing and R&D sites in the region, which will also enable SRI to further strengthen its competitiveness. SRI expects that Buffalo plant (Location: New York State), acquired as a result of the dissolution, will be utilized for future business expansion in North America. (2) In Europe, this dissolution will enable SRI to own manufacturing and R&D bases, etc.
SRI aims to achieve sales of JPY1.2 trillion and operating income of JPY150 billion respectively in 2020 as stated in our long-term vision, “VISION 2020”. Through the dissolution, SRI will add new action plan items and aim to surpass its financial targets.
SRI is currently conducting detailed analysis of the impact on FY2015 earnings as a result of the dissolution of the alliance agreement and joint ventures, and will disclose this information in a timely manner when it is confirmed.
