Jan 7 (Reuters) - Goodyear Tire & Rubber Co ( GT ) said

on Tuesday that it will sell its Dunlop brand to Japan's

Sumitomo Rubber Industries ( SMTUF ) for $701 million in cash as

part of a plan to streamline its business.

The sale covers the Dunlop brand and its trademarks in

Europe, North America and Oceania, the company said.

Goodyear said it will continue to sell Dunlop-branded tires

for passenger cars in Europe through at least Dec. 31 this year

and will pay a royalty to Sumitomo Rubber.

Goodyear will then continue to supply certain Dunlop-branded

tires to Sumitomo in Europe for five years.

The tire company said it will also license back Dunlop

trademarks for truck tires in Europe on a long-term basis and

will pay the Japanese firm royalty on sales.

In 2023, Goodyear announced plans to cut costs and trim its

portfolio of businesses, including its Dunlop brand and its

Off-the-Road and chemicals units, aimed at delivering more than

$2 billion in gross proceeds.

The tire company sold its Off-the-Road equipment tire

business to Japan's Yokohama Rubber ( YORUF ) for $905 million in

cash last year as part of the same cost-cutting drive.

Tire manufacturers have come under pressure over the past

few years from cheaper Chinese rivals and face scrutiny from

regulators on concerns of pollution.