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Goodyear will not be building a new tire production facility in the Akron area, Mayor Don Plusquellic told reporters Tuesday evening.

“Very disappointed,” he said. “Saddened for the people here that potentially could have had those jobs.”

Plusquellic said he received a letter from the company whose world headquarters is, and will remain, in Akron.

Geography worked against having the new facility in the Akron area as the company will most likely build closer to its growing Central and South America markets, he said.

In a copy of the letter provided to the media, Laura Thompson, Goodyear’s CFO, pointed to costs related to shipping tires to those growth markets:

After initial review of key factors, such as logistics, labor costs and access to a deep-sea port, we regrettably must remove Ohio from consideration. The analysis shows that locating in Ohio would add more than $50 million a year in costs over other locations, leaving Goodyear at a significant competitive disadvantage.

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