CHICAGO, Aug 15 (Reuters) Goodyear Tire&Rubber Co. said on Wednesday it may build tire factorie

CHICAGO, Aug 15 (Reuters) Goodyear Tire&Rubber Co. said on Wednesday it may build tire factories in Eastern Europe and Asia in addition to planned investments in existing plants for an expansion in production.

Goodyear, the largest U.S. tire maker, also said its multiyear restructuring, which includes some plant closings and asset sales, remains on track for $1.8 billion to $2 billion of annualized gross cost savings by the end of 2009.

The company previously said it intended to invest in existing factories to increase capacity for higher-profit tires by 40 percent globally and to raise production capacity by 33 percent in existing low-cost plants.

Goodyear said the investments in existing plants, and the added plants in Eastern Europe and Asia, would drive its plan to have half of its global tire production in low-cost countries by 2012.

The tire maker also said it would invest in plants in Fayetteville, North Carolina, and Gadsden, Alabama, to increase their capacity for producing higher-profit tires.

Goodyear has closed or plans to close plants or cut tire production at facilities in New Zealand, the United Kingdom, Morocco, the United States and Canada in recent years.

The company wrapped up its major planned asset sales for the restructuring a few weeks ago with the divestment of its engineered products unit. It plans to use proceeds from the sale to pay down debt, fund a health-care trust for union retirees, and expand its business.

Goodyear also said it would repay $950 million of debt, including a $300 million third-lien term loan, on Thursday, and $650 million of secured notes in the first quarter of 2008.

Those early payments, and an earlier redemption of $315 million of senior notes in June, will save Goodyear more than $125 million per year in interest expenses, it said.

Goodyear shares were off 88 cents, or 3.25 percent, at $26.47 in morning trade on the New York Stock Exchange.

REUTERS DKS DB2007