AKRON (Feb. 10, 2011)—Goodyear intends to close its Union City, Tenn., tire manufacturing plant by the end of 2011 as part of its plan to cut manufacturing costs globally.
“While we are committed to manufacturing in North America, all of our plants must be cost competitive and be able to demonstrate sustainable world-class productivity,” said Chairman and CEO Richard J. Kramer. “That is not the case with this plant, and as a result, the market has moved beyond what the factory is able to build."
The Union City factory, which employs about 1,900, has about 12 million units of capacity.
The closure announcement is the last action in a plan put in place in 2009 to cut 15 million to 25 million units of capacity, Goodyear said. The plant closing is expected to save the tire maker about $80 million annually, it said.