Citing cost reduction, Goodyear to shut down Shah Alam plant in June this year affecting 550 workers

KUALA LUMPUR, March 7 — One of the country’s leading tyre manufacturers, Goodyear, said it will be closing down its plant in Shah Alam starting June 30 this year, affecting some 550 positions.

Goodyear’s Asia Pacific president Nathaniel Madarang said that the decision was part of its “transformation” programme to cut costs and remain competitive in the market.

“Goodyear Forward is a transformation programme designed to optimise our footprint and portfolio, deliver significant margin expansion and create shareholder value. This programme includes specific actions to deliver annualised cost reductions of US$1 billion (RM4.7 billion) by 2025, ensuring we remain competitive and positioned as an industry leader.

“As part of these efforts, Goodyear has made the difficult but necessary decision to close our manufacturing plant in Shah Alam, Malaysia, effective June 30, 2024, with closure expected to be complete by the end of the year,” he said in a statement here.

“These decisions are not made lightly, but we need to take them to advance the long-term interests of both our business and customers,” he said, adding that the approximately 550 positions in their Malaysia operations will be treated with respect and transparency during this process.

According to its website, Goodyear’s involvement in Malaysia dates back to 1908 when The Goodyear Orient Company, a rubber-buying firm, was established in Singapore to purchase rubber from plantations in Malaysia and Indonesia.

The sales of Goodyear products in Malaysia began in 1929 through the office of the Goodyear Sales Company, which was established in Singapore.

Goodyear’s tyres were also fitted in Malaysia’s first locally produced car, the Proton Saga back in 1985.

It will continue to serve the local market with tyres imported from its plants in Thailand, Indonesia, China, and Taiwan.