Titan Tire Corporation said Tuesday that it purchased the 2.1 million square foot Goodyear Obion County facility and its assets for $9 million.
The company will not produce radial passenger or SUV tires at the plant and Goodyear will have until June 2012 to remove the equipment it wants to keep.
“The decision on whether Titan will keep the equipment in Union City or move the equipment to other Titan tire factory locations will not be made until mid-2012,”Maurice Taylor, chairman and CEO of Titan International, said in a statement.
Titan Tire’s acquisition of the former Goodyear plant has generated optimism for Obion County, which had the state’s second highest level of unemployment during the past two months as a result of the Goodyear plant closure.
“We do not believe the site would be used for OTR production in the near-term given that it was a passenger tire plant and the fact that the workforce there was unionized is likely unattractive to Titan as well,” BB&T Capital Markets vice president Schon Williams – an industry analyst wrote in a research note.