In November last year, the Goodyear Tire & Rubber Company revealed its “Goodyear Forward” transformation plan, in which one of the key initiatives outlined was cost reduction actions the tyre maker would take to ensure it remained competitive heading into the future.
As part of that cost optimisation and streamlining of its operations, the company has announced that it is set to shut down its manufacturing plant in Malaysia, effective June 30, 2024, with the closure of the facility expected to be completed by the end of this year. The plant closure will affect 550 positions associated with the factory.
While sales and marketing of its products are set to continue in the country, it’s a sad end to the Shah Alam facility, which opened in 1972 and was one of the earliest factories built in the area. During its lifetime, the factory had the honour of supplying GT 70 tyres for Malaysia’s first national car, the Proton Saga, in 1985, and of being the first Goodyear factory in the world to receive ISO 9002 certification in 1992.
Elsewhere, the loss of local supply from the Goodyear route means that the likes of Perodua may have to get tyres from Toyo or Continental, the only companies with left with local production.
The closure was announced by the company via an internal statement issued to its associates by Goodyear’s Asia Pacific president, Nathaniel Madarang, as indicated below:
“As you know, Goodyear Forward is a transformation program designed to optimise our footprint and portfolio, deliver significant margin expansion and create shareholder value. This program includes specific actions to deliver annualised cost reductions of USD1.0 billion by 2025, ensuring we remain competitive and positioned as an industry leader.
As part of these efforts, Goodyear has made the difficult but necessary decision to close our manufacturing plant in Shah Alam, Malaysia, effective June 30, 2024, with closure expected to be complete by the end of the year.
As with any facility closure, there will be an associate impact, and in this case, approximately 550 positions in our Malaysia operations will be affected. We are committed to treating our associates with respect and transparency during this process.
These decisions are not made lightly, but we need to take them to advance the long-term interests of both our business and customers. Thank you for your continued focus on delivering results and for all you do to make Goodyear successful.”
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