LAWTON — The Comanche County Industrial Development Authority recently made a million-dollar pledge to help Lawton’s Goodyear plant finance a $320 million project.
The CCIDA voted April 4 to approve a $1 million loan to Goodyear, which would be spread out over five years. The new loan will begin in 2024.
Goodyear officials is updating the Lawton plant to accommodate the electric car industry, which requires a different type of tire than traditional cars, said CCIDA Chairman Paul Ellwanger. He noted that the company has asked the state and county to provide financial assistance for the project.
“The finance committee thought that this was a very positive request, and that’s why we’re here today, to consider that at the full authority,” he said.
Ellwanger said the company is also seeking a state loan for the project, but he had not confirmed whether the state has approved the request.
Goodyear plans to invest about $320 million in the Lawton plant and has asked the county to contribute $1 million toward the cost, the company said in a Feb. 20 letter to CCIDA.
“This modernization project, comprised of state-of-the art machinery, will not only solidify Goodyear Lawton as the global leader in the Goodyear corporation, but it will also provide a safer, more ergonomically friendly work environment for our associates,” the company said. “These projects will be installed over the next four years and will enhance the plant’s capability to efficiently produce the larger diameter, more complex tires that the market is demanding.”
Based on the CCIDA’s cash flow position, the authority’s finance committee proposed approving the $1 million loan. The authority would divide the loan into installments of $200,000 per year for five years.
Goodyear still owes about $375,000 on its previous incentive agreement and has offered to pay about $50,000 a month for the next eight months instead of a single lump sum. The new incentive would begin once the existing agreement ends in March 2024.
“In other words, $50,000 a month would take care of the $375,000,” said CCIDA member Fred Fitch. “And then at that point in time, we would start this $200,000.”