Hundreds Of Workers To Be Affected As Goodyear Shutters Its Shah Alam Factory In June
Goodbye, Goodyear!
By Sadho Ram — 07 Mar 2024, 03:48 PM
Goodyear Malaysia has announced the closure of its 52-year-old manufacturing plant in Shah Alam, Selangor, effective 30 June
The shuttering of the Shah Alam factory, which has been a pillar of Goodyear's activities in Malaysia since 1972, will leave an impact on the local labour force, affecting some 550 workers, reported the New Straits Times.
According to an internal memo that was purportedly leaked, Goodyear Tire & Rubber Company's Asia Pacific president Nathaniel Madarang said the closure is part of the company's "transformation programme".
Madarang said the transformation programme, dubbed "Goodyear Forward", is "designed to optimise the company's footprint and portfolio, deliver significant margin expansion, and create shareholder value."
Madarang emphasised that the programme involves specific measures to achieve annualised cost reductions of USD1 billion (approximately RM4.71 billion) by 2025, ensuring Goodyear remains an industry leader.
Despite the plant's closure, Goodyear will retain its presence in the Malaysian market
The American tyre company aims to do this by importing tyres from its factories in Thailand, Indonesia, China, and Taiwan.
Madarang stressed that it was a difficult decision, but one that's necessary to remain competitive, adding that the company would prioritise its employees' welfare.
The company's presence 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 then-Malaya and Indonesia. Goodyear began selling its products in Malaya in 1929, according to The Edge.
