Goodyear makes Huntsville plant closing official

AKRON (Oct. 8)—Goodyear officially has confirmed it plans to close its Goodyear Dunlop tire factory in Huntsville, Ala., by Dec. 5. The closing will affect about 1,100 hourly and salaried workers at the plant. Goodyear will take charges of about $155 million in this year's fourth quarter and an accelerated depreciation charge of $100 million in connection with the closing. The firm estimates its total cash payments to be about $85 million, with $65 million of that spent over the next three years. Annual savings of $100 million are projected. Goodyear said the decision was based on its need to reduce capacity in North American, saying the Huntsville plant was one of its highest-cost facilities. Hourly workers will be given preferential hiring consideration at the Goodyear factory in Gadsden, Ala. The Huntsville plant has capacity to make 27,000 passenger and light truck tires daily. Lines currently made there will be transferred to other Goodyear facilities in the U.S.