AKRON—Goodyear is planning to close tire plants in Fulda and Fuerstenwalde Germany, impacting 1,750 jobs, as part of a strategy to improve its competitive position and reduce its production cost per tire its Europe/Middle East/Asia (EMEA) region.
The company disclosed today in an 8K filing with the Securities and Exchange Commission that it expects these actions to cost it up to $600 million to carry out but should yield improvements to the EMEA's segment operating income of about $280 million over a three-year period through year-end 2027.
Goodyear earlier had announced plans to cut production at the Fulda plant by 50 percent.
Goodyear called the plan, dubbed "Goodyear Forward," a comprehensive evaluation done by the Strategic and Operational Review Committee of its board of directors.
Of the 1,750 employees expected to be impacted by the closing, 1,050 would be hourly workers, according to the German trade union IGBCE, which represents hourly workers at Goodyear's plants in Germany.
The Fulda closing should be completed by year-end 2025, whereas the Fuerstenwalde production phase-out will take until year-end 2027, Goodyear said, noting that it intends to continue operating mixing operations at the plant in Fuerstenwalde in eastern Germany.
Goodyear acquired the Fuerstenwalde factory in 2015 as part of the dissolution of its Global Alliance with Sumitomo Rubber Industries Ltd., which in turn had taken it over in its 1994 acquisition of Pneumant Reifen & Gummi Werke G.m.b.H.
The plans to close are subject to consultation with relevant employee representative bodies, Goodyear said.