Goodyear closes UK plant under EMEA consolidation plan

Wolverhampton, UK – Goodyear Tire and Rubber Co. has launched a “rationalisation” plan in Europe, Middle East and Africa, starting with a plant closure in the UK and relocation of a number of other production activities across Europe.

Goodyear Dunlop Tyres UK announced on 25 June that it was in talks with unions and workforce over a proposal to close down its Wolverhampton retread facility.

“The proposal affects 330 members of staff,” a company spokesman told ERJ, adding that the capacity would be taken up by other Goodyear Dunlop facilities across Europe.

According to Goodyear, the decision is in response to “changing market conditions” and to help strengthen the long-term competitiveness of the company.

The proposed actions, said the company, are needed to face “challenging business environments, increased competition and currency headwinds”.

On the same day, Goodyear Dunlop Tires Germany announced consolidation plans, stating that parts of its Wittlich plant would cease to operate and that other EMEA units would take up the capacity.

The passenger car tires production at Wittlich has gradually been moved to other plants in the region in recent years, while the retreading, proving and commercial tire production remained at the plant.

Asked if the rationalisation plan would result in the closure of the plant or it being restructured into purely a truck tire plant, a Goodyear spokesman insisted that the proposal only applied to passenger tire production.

Goodyear’s German subsidiary cited similar reasons for the closure, stating that it was a response to difficult market environment, and the increasing competition, adding that the measure aimed at strengthening the company’s long-term competitiveness.

The relocation will affect approximately 120 jobs in Wittlich.

Goodyear also announced on 25 June that it was planning to relocate mixing operations at its tire production plants across the EMEA region.

Goodyear announced on 23 June that it had approved the rationalisation plan in EMEA to strengthen the company’s global competiveness.

These plans, said Goodyear, will result in a net reduction of approximately 360 to 390 associate positions, and that it aimed to complete the process by the end of 2016.

The company estimates total charges associated with these actions to be between $70 million (€62.5 million) and $80 million, of which $55 million to $60 million is expected to be cash charges primarily related to severance payments and contractual obligations.

Once completed, these actions are expected to improve EMEA segment operating income by approximately $30 million annually, beginning in 2017.