AKRON (July 11, 2011)—Goodyear has ceased production at its tire plant in Union City, Tenn., earlier than expected, after announcing in February its intention to close the passenger and light truck tire manufacturing facility by the end of 2011.
“When we announced our intention to close the plant, we expected the shutdown would occur by year-end,” said Chairman and CEO Richard J. Kramer. “Since then, the product transfers to the other Goodyear plants have been completed more quickly than expected. We are now able to meet the needs of our consumer tire customers without further production in Union City.”
As a result of the accelerated closure July 11 and payments to about 1,800 employees at the plant, Akron-based Goodyear said it expects to record additional after-tax charges of about $20 million, most of which will be recorded in the second quarter of 2011.
The closure is the last action in Goodyear's plan since 2009 to cut 15 million to 25 million units of capacity. The closing of the Union City facility, which had a capacity of about 12 million tires, is expected to save the tire maker about $80 million annually, according to Goodyear.