Goodyear shuts Union City plant early

ERJ staff report (TB)

Akron, Ohio -- Goodyear has ceased production at its tyre plant in Union City, Tenn., earlier than expected, after announcing last February its intention to close the passenger and light truck tyre plant by year-end.

“When we announced our intention to close the plant, we expected the shutdown would occur by year-end,” Chairman and CEO Richard J. Kramer said. “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 tyre 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.

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 43-year-old Union City factory, which had annual capacity of about 12 million tyres, is expected to save the tyre maker about $80 million annually, the firm said.

From Tire Business (A Crain publication)

Press release from Goodyear