AKRON, Ohio — Goodyear Tire and Rubber will close a number of plants as part of a $1 billion cost-cutting initiative over the next three years.

Goodyear, which will also sell some assets to counter high commodity prices and pension costs, said it would cut costs by $750 million to $1 billion over the period, according to Reuters.

Goodyear expects to cut high-cost manufacturing capacity by 8 percent to 12 percent to generate savings of about $100 million to $150 million per year. It did not say how many plants it would close, or where they are located.

“We realize the rising materials, health care costs and inherent cyclicality of sectors in the industry will continue to challenge us,” CEO Robert Keegan is quoted as saying at an investors meeting.

Goodyear reported a profit in 2004 after losses totaling more than $2 billion over the previous two years. But rising raw material costs — oil prices in particular — have inflated the cost of synthetic rubber and of operating plants and shipping products.

— from Reuters