AKRON, OHIO -- The latest in a series of global cost cutting measures, Goodyear Tire & Rubber has announced a proposal to close a tire plant in New Zealand.

"A key component of our strategy is the elimination of high-cost tire manufacturing capacity," said Goodyear Chairman and Chief Executive Officer Robert Keegan. "Our objective is to take actions over the next three years that will result in annual savings of between $100 million and $150 million."

The company's South Pacific Tyres (SPT) business has initiated consultation with associates and union representatives regarding the proposal to close the plant in Upper Hutt, New Zealand. The plant, which has about 400 associates, produces about two million radial passenger car tires per year.

Goodyear and SPT remain committed to the consumer and commercial tire markets in New Zealand and will supply customers with product produced in other countries in the Asia Pacific region, according to SPT Chief Executive Officer Joseph Copeland. Manufacturing in New Zealand has experienced greater pressure than in many other markets due to high costs, competition from low-cost imports and the lack of domestic auto production.

The proposed closure is expected to be completed within six to eight months and will create annual cost savings of approximately $15 million in Goodyear's Asia Pacific region. It will result in restructuring charges of approximately $35 million (after tax), of which approximately $20 million is expected to be cash charges.

Formed in 1987 as a joint venture, SPT has been wholly owned by Goodyear since January 2006. The leading tire maker and marketer in Australia and New Zealand, it has 4,000 associates and annual sales of more than $700 million. Its results have been consolidated with those of Goodyear's Asia Pacific region since January 2004.

For more information on Goodyear, go to: www.goodyear.com .

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