AMIENS, France—Goodyear plans to close its Amiens North farm and passenger tire plant and leave the farm tire business in Europe, Africa and the Middle East, after five years of failed labor negotiations to save at least a portion of the business.
Goodyear said it has presented plans to local labor representatives to end production at the 54-year-old plant and close it. The facility employs 1,173.
The move to close the plant remains subject to consultation with the European Central Works Council and relevant countries' employee representative bodies where required, Goodyear said.
Goodyear took at $74 million charge against earnings in the fiscal 2012 fourth quarter, bringing losses attributed to the plant and business to at least $230 million, according to an 8K filing with the Securities and Exchange Commission.
Closing Amiens North will eliminate approximately 6 million units of high-cost annual capacity, Goodyear said, although production there last year was only 1.3 million units.
The actions are expected to improve Goodyear's Europe/Middle East/Africa business unit operating income by approximately $75 million annually, as compared to 2012 results, following the closure.