Goodyear announces $120 million expansion in China. (Aquisition, Expansions).

Goodyear Tire & Rubber, Akron, OH, announced a $120 million expansion of its tire plant in Dalian, China, with the intention of further strengthening its leadership position in the expanding high performance consumer tire segment of the market. Over a five-year period, Goodyear Dalian will nearly triple its current annual capacity of 1.9 million tires to more than 5.3 million tires to meet the increasing demand in both the replacement and original equipment markets in China. Currently, Goodyear Dalian supplies high performance tires to such automakers as Volkswagen, Audi, General Motors and Citroen. Goodyear's nationwide retail distribution network of tire outlets is expected to expand from 1,600 to more than 2,100 by 2005. Goodyear officials also announced a $4.7 million expansion at its Asheboro, NC plant that will add about 20 people to its workforce. The expansion will include new construction at the plant, which now employs about 400, as well as the addition of new equipment. Goodyear has sold its specialty chemical business, based in France, and certain specialty chemical-related U.S. assets to Littlejohn & Co., LLC, a private equity firm based in Greenwich, CT. The specialty chemical business, which includes resins for paints, coatings and print toners, elastomeric modifiers, and rubber and plastic antidegradants, generated sales of more than $120 million in 2000, and includes facilities in Le Havre and Orsay, France, and Akron, OH, and employs more than 410 associates.

Wacker Silicones, Adrian, MI, acquired the assets of Silmix, a silicone rubber compounder headquartered in Stow, OH.

Lord, Cary, NC, announced the acquisition of two product lines from Goodrich. The patented Velvet-Ride suspension system and Torsilastic rubber spring technology will be incorporated into Lord's Industrial Products Business Unit.

Parker Hannifin announced an agreement to acquire operations of ITR SpA, a Subsidiary of the Saiag Group, for $68 million. ITR is an Italian manufacturer of hose, fittings and rubber compounds for hydraulic, industrial and oil/gas applications. Parker Hannifin's Hose Products Division announced the opening of its Tube Fabrication Unit, located in Cleburne, TX.

Dow Chemical, Midland, MI, will invest $1 billion in rsearch and development in 2002, two thirds of which will be invested for inventing new products and materials.

Degussa AG, Dusseldorf, Germany, has acquired a share of the Turkish precipitated silica manufacturer Egesil AS in Adapazari near Izmit. Degussa has initially acquired 25% of Egesil's shares, and majority shareholding is already scheduled for the coming years. Egesil currently has an annual production capacity of approximately 8,000 metric tons, which will be expanded to approximately 15,000 metric tons, including new manufacturing technologies for high performance tire silicas.

Bayer plans to transform its current organizational structure into a management holding company with independent operating subsidiaries. Subject to stockholders' approval, the new structure is to be operational effective January 1, 2003. Merging Bayer's rubber, plastics, polyurethanes, as well as coatings and colorants business groups will create one of the world's largest polymer companies, with sales of more than EUR 11 billion, according to the company. As part of this restructuring, Bayer plans to divest non-core businesses, including Rhein Chemie Rheinau of Mannheim, Germany, a specialist in additives for the rubber, lubricants and plastics industries, as well as in polyurethane chemistry. Bayer also plans to sell its 50% interest in PolymerLatex GmbH of Marl, Germany.

Daikin America recently commissioned a full-service fluoroelastomer applications laboratory at its headquarters in Orangeburg, NY. This laboratory will support the development of Daikin's Dai-El fluoroelastomer products.

Borden Chemicals and Plastics Operating Limited Partnership (BPC) announced that it has executed an asset purchase agreement through which, subject to bankruptcy court approval, Shintech Louisiana LLC will acquire the assets and operations of BCP's polyvinyl chloride plant in Addis, LA. Under the terms of the current sale agreement, Shintech will pay $38 million to acquire the Addis plant, property and equipment, and an additional sum to be determined for the value of inventory and certain accounts receivable.

Crompton, Greenwich, CT, announced the sale of its color business to Sensient Technologies. Crompton will receive $32 million in cash in exchange for the business and its Gibraltar, PA facility and the assumption of certain liabilities by Sensient.

Nizhnekamskneftekhim, Nizhnekamsk, Russia, plans to build a multi-purpose plant to produce 30,000 metric tons per year of chloro- and bromobutyl rubber.

An $11 million tire recycling facility will open in Campbelltown, Australia next year, creating 35 jobs. The facility, which is the first of its kind in Australia, will break down and manufacture environmentally-friendly rubber tires. The plant will be run by a Chinese-based consortium and will operate as Australia Weilong Environmental.