Goodyear to close Union City plant by year’s end
WIthin its full year 2010 results report, released February 10, Goodyear Tire & Rubber discloses plans to close its tyre making facility in Union City, Tennessee by the end of this year. A stated reason for proceeding with closure plans is the desire to “reduce high-cost manufacturing capacity globally” as per Goodyear strategy. The Union City plant currently employs approximately 1,900 people.
“While we are committed to manufacturing in North America, all of our plants must be cost competitive and be able to demonstrate sustainable world-class productivity. That is not the case with this plant, and as a result, the market has moved beyond what the factory is able to build,” said Goodyear Tire & Rubber chairman and CEO Richard J. Kramer.
This closure, when complete, will eliminate approximately 12 million units of available capacity and Goodyear says it is the final action in plans announced in 2009 to eliminate 15 million to 25 million units of high-cost capacity around the world. Goodyear will reap annual cost savings of approximately $80 million as a result of the closure.
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