Goodyear to close 52-year-old Malaysian tire plant

KUALA LUMPUR—Goodyear is planning to cease production at its 52-year-old tire plant in Malaysia before year-end, an action that will impact 550 workers employed at the factory.

Goodyear said the decision to shutter the plant is part of its Goodyear Forward corporate restructuring program, whose aims include generating $1 billion in cost reductions by 2025. The closing procedure will start June 30 and be completed before year-end, Goodyear said.

The business has been operating in the red since 2017, according to a statement by the Malaysian Industrial Development Authority (MIDA).

"These decisions are not made lightly and we remain committed to treating our associates with care and respect," the company said, noting at the same time it intends to continue serving the Malaysian market through its Goodyear Malaysia Bhd. subsidiary.

Goodyear at this time did not disclose expected costs or potential savings associated with the closing.

The plant, opened in 1972 in the Shah Alam district in Malaysia's Selangor state, has a rated production capacity of 5 million units a year of passenger, light and medium truck, farm and OTR tires.

It is one of 10 plants Goodyear operates throughout Asia. Others are in China (Kunshan, Pulandian and Qingdao), India (Aurangabad and India), Indonesia (Bogor), Japan (Tatsuno), Thailand (Bangkok) and Vietnam (Tay Ninh).

This is the third pending closure announcement Goodyear has made in the past six months. The others are in Fulda and Furstenwalde, Germany.

Goodyear's factory is one of six tire plants operating in Malaysia. Others are operated by Continental A.G. (in Kedah and Selangor provinces), Friendship Rubber Industry (Selangor), Qingdao Fullrun Tyre Corp. Ltd. (Selangor) and Toyo Tire Corp. (Perak).

The Malaysian government, through initiatives led by the Malaysian Ministry of Trade and Industry and MIDA, has mobilized a specialized team to facilitate job placements, as well as offering upskilling and reskilling programs.