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Goodyear Tire and Rubber Company is undertaking a significant global restructuring, announcing the closure of several manufacturing plants across South Africa, Germany, France, Malaysia, and other countries. The moves come as the company seeks to streamline operations, reduce production costs, and remain competitive amid rising global expenses and shifting market dynamics.

In South Africa, Goodyear will close its Kariega plant (formerly Uitenhage) by the end of 2025, ending nearly 78 years of tire production in the Eastern Cape. Approximately 900 employees will be affected. The company emphasized that while manufacturing will cease, its commercial presence in South Africa - including sales, distribution, and the HiQ retail network - will continue. The National Union of Metalworkers of South Africa (Numsa) described the closure as a devastating blow to the local economy, highlighting already high unemployment levels in the region.

France has also seen closures, with Goodyear discontinuing consumer tire production at its Amiens plant, affecting around 820 of the 1,200 employees. Serge Lussier, Goodyear's EMEA vice president of manufacturing, cited uncompetitive costs and weak industry demand as the main reasons. Production at a second plant in Amiens, focused on farm tires, remains unaffected. The Amiens shutdown is expected to reduce around 6 million units of tire production as part of a broader plan to cut 15 to 25 million units globally over two years.

Germany has experienced similar reductions, with the Fulda and Furstenwalde plants scheduled for closure. These moves will impact 1,750 workers and are driven by a combination of declining demand, rising production costs, and competition from low-cost Asian imports. The European Commission has pledged over €3 million in support through the European Globalisation Adjustment Fund to assist displaced workers with reskilling, career guidance, and job placement.

In Asia, Goodyear will close its Shah Alam plant in Malaysia by mid-2024, affecting roughly 550 employees. Nathaniel Madarang, Goodyear's Asia Pacific president, said the closure is part of the "Goodyear Forward" transformation program aimed at optimizing the company's global footprint, cutting costs, and delivering shareholder value. Production for the Malaysian market will continue through imports from other regional plants in Thailand, Indonesia, China, and Taiwan.

Industry analysts attribute these closures to several converging factors. Rising labor and energy costs in traditional manufacturing hubs, weak consumer demand for certain tire segments, and growing competition from lower-cost Asian manufacturers have made some facilities economically unsustainable. Additionally, Goodyear is restructuring its portfolio, exploring strategic alternatives for its chemical business, Dunlop brand, and off-the-road equipment tire operations to focus on high-margin and competitive product lines.

Goodyear's series of closures underscores the challenges faced by established tire manufacturers in a globalized market. The company's strategy reflects an effort to balance operational efficiency with market demand, while addressing the pressures of globalization, technological change, and regional economic disparities. Workers and local economies affected by the shutdowns face uncertainty, highlighting the broader social and economic impact of corporate restructuring in the manufacturing sector.
- BD