Goodyear to reduce production at Union City plant

ERJ staff report (TB)

Akron, Ohio -- Goodyear will move its Union City, Tennessee, consumer tyre plant to a five-day, three-shift operation from continuous production, to align capacity with weak industry demand.

Akron-based Goodyear said the change will take effect July 6. The Union City plant has a capacity of 12 million tyres a year, but a spokesman did not indicate an expected production level following the schedule change.

Last month the United Steelworkers approved a pact that moved the Union City plant to unprotected status. About 550 employees in Union City accepted buyout offers connected with these moves.

Goodyear expects to record an after-tax restructuring charge of about $60 million for this move, primarily taken in the second quarter.

From Tire Business (A Crain publication)

Press release from Goodyear