Goodyear closing plant in Malaysia

The Goodyear Tire & Rubber Company intends to close another production facility, this time far away from its European operation. The company will end tyre making at its plant in Shah Alam by 30 June 2024, with the closure process completed by the end of this year. Approximately 550 employees will be directly affected by the plant’s shutdown.

The Malaysian Investment Development Authority (MIDA) reports that it and the country’s Ministry of Investment, Trade and Industry (MITI) are “are taking proactive and positive steps” in response to Goodyear’s decision to close its Shah Alam manufacturing facility. MIDA comments that the planned closure is “part of Goodyear’s global move aimed to achieve US$1.0 billion in annualised cost savings by 2025.”

MIDA notes that the tyre maker has been operating at a loss since 2017, prompting a strategic shift towards optimising its operations. “As part of its restructuring, Goodyear has indicated plans to transition from manufacturing to a distributor business model, focusing on premium profitable segments, building capability in sales and marketing, strengthening the distribution network, and improving the cost structure.”

Job placement initiatives

According to MIDA, Goodyear has been in “close coordination” with Malaysia’s government “well before” announcing the plant’s closure, working diligently to establish a support framework for the employees. “This pre-emptive collaboration demonstrates our collective commitment to the well-being of the workforce, underlining that our efforts to assist the affected employees is undertaken with foresight and responsibility.”

To mitigate the impact upon the plant’s workforce, Malaysia’s government through initiatives led by MITI and MIDA, has mobilised specialised team to facilitate job placements, as well as offering upskilling and reskilling programmes.