AKRON (Jan. 8) — Goodyear will close its 35-year-old tire plant in Casablanca, Morocco, this year and take a charge against earnings of about $28 million to cover the related expenses.
The closing of the plant and subsequent liquidation of Goodyear Maroc S.A. will save the company about $10 million a year, the firm said in a recent 8-K filing with the Securities and Exchange Commission.
The plant employs approximately 150. Capacity was listed as 3,000 units a day of car, light and medium truck and agricultural tires.
About $16 million of the charges will be cash related to severance payments and payments to minority shareholders; Goodyear owns 55 percent of Goodyear Maroc. The rest will be related to asset write-offs.
The charges will be recorded in the firm's fiscal 2006 fourth quarter.