Goodyear closes Philippine tire plant

AKRON (Feb. 4)—Goodyear has closed its Marikina, Philippines, tire plant, citing overcapacity and softening market demand. The closing affects 175 employees, and eliminates about 1,200 units of daily capacity for radial and bias-ply passenger and light and medium truck tires. Goodyear continues to operate a second factory in Las Pinas, Philippines, which may absorb some of the displaced workers, pending Goodyear's business requirements, the company said. "Despite the best efforts of our people and support from the local community, we have been unable to make the plant viable," said Harold Smith, Goodyear's Asia Region tire manufacturing director. "The Philippines tire market has not grown at the rate originally forecasted and the market has become highly competitive with a flood of low-cost imports from China and Southeast Asia." Over the past 18 months, Goodyear has closed plants in Argentina, England, Italy and Mexico and substantially reduced production at facilities in England, France and the U.S. to balance capacity with demand.