Goodyear to invest USD 800M to boost production capacity in all units.
Goodyear is budgeting nearly $800 million through 2019 to boost production capacity for high-value-added tyres in a bid to stay ahead of the demand curve for such tyres.
Officials at the Akron-headquartered company disclosed the expansion projects—slated at plants in the U.S., Mexico, South Africa, China and India—during a briefing with financial analysts in Boston.
Goodyear’s top executives also unveiled a growth and capital allocation plan that targets $3 billion in operating income by 2020 and between $4.3 billion and $4.9 billion in free cash flow through 2020. The firm’s operating income goal is up from $2.1 billion in 2016.
It expects to have $7 billion to $7.4 billion available for capital allocation during the 2017-20 fiscal year periods.
Of that, the firm is budgeting $1.8 billion to $1.9 billion for capital expenditures targeted for capacity expansions, $700 million to $800 million for restructurings, $3.5 billion to $4 billion for dividends and share repurchases, and $800 million to $900 million for debt repayment.