Plant capacities

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Tire dealer profi le

Facts section: plant capacities Capacity: up 0.8%

Tire capacity, not production, in North America totaled 321.9 million tires at 51 plants as of Jan. 1, 2011. Th at’s up nearly 1%, the fi rst year-to-year capacity increase since 2007. (Th e total does not include race or aviation tires.)

U.S. capacity was 262.3 million tires, a 1% increase over last year and 81.5% of total North American capacity. Th ere are 37 tire manufacturing facilities in the U.S., down from 48 plants 10 years ago.

Th e increase in domestic capacity can be att ributed to investments made by Bridgestone (Des Moines, Iowa), Cooper (Findlay, Ohio, and Tupelo, Miss.), Goodyear (Fayett eville, N.C., and Topeka, Kan.), Michelin (Ardmore, Okla., Fort Wayne, Ind., and Tuscaloosa, Ala.) and Yokohama (Salem, Va.).

Cooper’s capacity of 97,000 consumer tires a day is still 20% below what it was two years ago, before it closed its Albany, Ga., plant as part of its capacity restructuring. In May 2010, Chairman, CEO and President Roy Armes told investors that Cooper plans to add 10% to 15% capacity at its manufacturing facilities (including Corporacion de Occidente SA de CV in Mexico) over the next two years “without investing in brick and mortar.”

Canadian tire plant capacity remained at 28.1 million tires for the third consecutive year. Canada’s six plants represent 8.7% of total tire production capacity in North America.

Mexican capacity remained fairly stable, increasing less than one-half percent to 31.4 million tires. Its eight plants account for 9.8% of total North American capacity.

Tire production capabilities will increase more dramatically in the next few years, with the possible addition of three manufacturing plants in North America.

1. In 2008, Kumho announced it was going to build a consumer tire plant in Macon, Ga. However, the recession curtailed those plans, maybe for good.

“The construction of the Georgia plant is currently on hold,” says

Chart 16 NORTH AMERICAN TIRE PLANT CAPACITIES as of January 1, 2011 (in thousands of units)

Plant location/ Y ear constructed PassenNonger union ISO 1 QS 2 per day:

Bridgestone/Firestone Light truck per day: Truck per day: Others per day: Total

La Vergne, Tenn., 1972 x x 7.1 2.3 6.2 0.0 15.6 Warren County, Tenn., 1990 x x 0.0 0.0 8.0 0.0 8.0 Bloomington, Ill., 1965 x x 0.0 0.0 0.0 0.26 0.26 Des Moines, Iowa, 1945 x x 0.0 0.0 0.0 4.5 4.5 Wilson City, N.C., 1974 x x x 33.1 0.0 0.0 0.0 33.1 Aiken County, S.C., 1999 x x x 17.3 7.7 0.0 0.0 25.0 Joliette, Quebec, 1966 x x 9.3 7.2 0.0 0.0 16.5 Monterrey, Mexico, 2007 x 7.0 0.0 0.0 0.0 7.0 Cuernavaca, Mexico, 1980 x x 11.0 4.4 0.0 0.0 15.4 Total: 84.8 21.6 14.2 4.76 125.36 Carlisle Tire & Wheel Co. Jackson, Tenn., 2009 x 0.0 0.0 0.0 26.0 26.0 Clinton, Tenn. (Dico), 1974 x x 0.0 0.0 0.0 15.0 15.0 Total: 0.0 0.0 0.0 41.0 41.0 Continental Tire North America Inc. Mount Vernon, Ill., 1973 x x x 28.0 8.0 4.5 0.0 40.5 Total: 28.0 8.0 4.5 0.0 40.5 Cooper Findlay, Ohio, 1917 x 7.0 16.0 0.0 0.0 23.0 Texarkana, Ark., 1964 x 24.0 8.0 0.0 0.0 32.0 Tupelo, Miss., 1984/1960 x x 42.0 0.0 0.0 0.0 42.0 Total: 73.0 24.0 0.0 0.0 97.0 Goodyear Buffalo, N.Y., 1923 x 4.3 5.4 1.75 4.55 16.0 Danville, Va., 1966 x x 0.0 0.0 11.2 0.0 11.2 Fayetteville, N.C., 1969 x x 36.5 9.5 0.0 0.0 46.0 Gadsden, Ala., 1928 x x 15.0 10.0 0.0 0.0 25.0 Lawton, Okla., 1978 x x x 65.0 0.0 0.0 0.0 65.0 Topeka, Kan., 1945 x x 0.0 1.0 5.5 1.6 8.1 Union City, Tenn., 1968 x x 35.0 13.0 0.0 0.0 48.0 Medicine Hat, Alberta, 1960 x x 15.0 0.0 0.0 0.0 15.0 Napanee, Ontario, 1990 x x x 19.0 0.0 0.0 0.0 19.0 Total: 189.8 38.9 18.45 6.15 253.3 GTY (General/Toyo/Yokohama) Mount Vernon, Ill., 1988 x x x 0.0 0.0 7.3 0.0 7.3 Total: 0.0 0.0 7.3 0.0 7.3 Michelin Ardmore, Okla., 1969 x x x 40.5 3.5 0.0 0.0 44.0 Dothan, Ala., 1979 x x 1.0 4.0 0.0 0.0 5.0 Fort Wayne, Ind., 1961 20.5 8.5 0.0 0.0 29.0 Greenville, S.C., 1975 x x 28.0 0.0 0.0 0.0 28.0 Greenville, S.C. (C3M), 1997 x x x 7.0 0.0 0.0 0.0 7.0 Lexington, S.C., 1981 x x 19.0 0.0 0.0 0.0 19.0 Lexington, S.C., 1998 x x 0.0 0.0 0.0 0.09 0.09 Spartanburg, S.C., 1978 x x 0.0 0.0 7.0 0.0 7.0 Tuscaloosa, Ala., 1945 x 22.5 6.5 0.0 0.0 29.0

Light Passentruck Truck Others Plant location/ Nonger per per per Year constructed union ISO 1 QS 2 per day: day: day: day: Total Bridgewater, Nova Scotia, Canada, 1973 x x 11.0 3.0 0.0 0.0 14.0 New Glasgow, Nova Scotia, Canada, 1971 x x 7.0 1.0 0.0 0.0 8.0 Waterville, Nova Scotia, Canada, 1982 x x 0.0 0.0 0.0 4.5 4.5 Queretaro, Mexico x 6.0 0.0 0.0 0.0 6.0 Total: 162.5 26.5 7.0 4.59 200.59 Pirelli Tire North America Rome, Ga., (MIRS), 2002 x x 1.2 0.5 0.0 0.0 1.7 Total: 1.2 0.5 0.0 0.0 1.7 Specialty Tires of America Indiana, Pa., 1915 x 0.0 0.4 0.0 4.6 5.0 Unicoi, Tenn., 1997 x 0.0 0.0 0.0 1.6 1.6 Total: 0.0 0.4 0.0 6.2 6.6 Titan Tire Corp. Bryan, Ohio, 1967 x x 0.0 0.0 0.0 0.33 0.33 Des Moines, Iowa, 1943 x 0.0 0.0 0.0 11.25 11.25 Freeport, Ill., 1964 x x 0.0 0.0 0.0 8.1 8.1 Total: 0.0 0.0 0.0 19.68 19.68 Toyo Tire North America Manufacturing Inc. White, Ga., 2005 x x 6.0 1.0 0.0 0.0 7.0 Total: 6.0 1.0 0.0 0.0 7.0 Yokohama/Mohawk Salem, Va., 1968 23.0 1.0 0.0 0.0 24.0 Total: 23.0 1.0 0.0 0.0 24.0 Grupo Carso/Euzkadi (Continental AG) San Luis Potosi, Mexico 15.0 5.0 0.0 0.0 20.0 Total: 15.0 5.0 0.0 0.00 20.0 JK Tyre & Industries (formerly CIA Hulera Tornel) Mexico City, Mexico 0.5 1.0 1.5 0.64 3.64 Tultitlan, Mexico 7.0 1.5 0.5 0.4 9.4 Tacuba, Mexico 2.5 2.5 0.0 0.0 5.0 Total: 10.0 5.0 2.0 1.04 18.04 Corporacion de Occidente SA de CV Guadalajara, Mexico, 2005 x x x 10.0 7.2 2.8 0.0 20.0 Total: 10.0 7.2 2.8 0.00 20.0

U.S. Totals Canadian Totals Mexican Totals TOTAL: 483.0 106.3 51.45 77.88 718.63 61.3 11.2 0.0 4.5 77.0 59.0 21.6 4.8 1.04 86.44 603.3 139.1 56.25 83.42 882.07

2010 vs. 2011 2009 vs. 2008 2008 vs. 2007 +0.6% +2.4% 0.0% +0.3% +0.8% - 5.4% -10.7% 0.0% - 2.0% -5.7% - 3.9% - 4.4% +0.9% +4.0% -3.7%

Footnotes:

1 Plants that are ISO (International Organization for Standardization) 9001:2000 certifi ed (www. iso.org). 2 QS (Quality System) 9000 certifi cation, required by suppliers to Ford Motor Co., General Motors Corp. and Chrysler LLC (www.qscertifi cation.com). Marketing Manager David Koh. “We will make a decision in 2011.”

Th e plant was expected to produce 2.1 million tires a year, with room to expand. Th e initial cost was $165 million. 2. Pirelli announced it will build a plant in Mexico “to serve the North American Free Trade Agreement (NAFTA) area.” Th e initial investment in the plant will be $210 million. Th e facility is expected to focus on premium tire production, per the company’s 2011-2013 Industrial Plan. 3. CGS Tyres, the tire producing division of CGS Holding, will build a farm tire manufacturing plant in Charles City, Iowa, beginning Jan. 1, 2012. Th e Czech Republic-based company says the $43.8 million facility will produce Mitas and Continental brand radial farm tires, which will be sold throughout North America. MTD estimates the plant will be able to produce close to 54,000 tires annually, or 150 a day.

In response to strong replacement and OE demand in 2010, a number of domestic tire manufacturers announced additional investments in North American capacity. Yokohama is investing $13 million in its Salem, Va., plant to boost production of passenger and light truck tires. It will be completed by August 2011.

Pirelli Tire North America is adding a compound mixing facility to its MIRS (Modular Integrated Robotized System) facility in Rome, Ga. Th e $12 million investment will increase capacity, says Mauro Pessi, chairman and CEO.

Both Bridgestone Americas Tire Operations and Toyo Tire North America Manufacturing Inc. are in the middle of expansion plans implemented prior to 2010.

Bridgestone will complete a $77 million, three-year expansion of its Des Moines farm tire plant by the end of this year. Some of the additional capacity in radial farm tire production will serve the North American market.

Toyo’s goal is to increase capacity at its Toyo consumer tire plant in White, Ga., from 2.5 million tires to 4 million tires by 2012.

If Titan International Inc. decides to use the molds it purchased from Denman Tire LLC in bankruptcy court last year, Titan may also add to tire capacity in the U.S. ■