Goodyear has announced an investment of $US50 million to expand its plant in Cali, Colombia, to produce radial medium truck tyres.

According to the tyremaker, the investment confirms Goodyear's commitment to the growth of Colombian exports to Latin American countries such as Mexico, Venezuela, Ecuador and Chile and the Mercosur trade region (Brazil, Argentina, Paraguay and Uruguay).

The expansion will be in several phases - the first is expected to begin soon and the project will be completed by 2006.

Goodyear's Colombian subsidiary, Goodyear de Colombia SA, celebrated its 60th anniversary last month.

Goodyear said Mercosur represents the fourth largest market worldwide, with more than 220 million consumers and a combined gross domestic product of more than $1.1 trillion.

Rogério Louro