KUALA LUMPUR: The closure of Goodyear's 52-year-old Shah Alam plant, effective June 30, will impact about 550 workers.
The Shah Alam factory, which has been a pillar of Goodyear's activities in Malaysia since its founding in 1972, represents the company's enduring commitment to the regional economy and automotive sector.
The local labour will suffer greatly from the plant's shutdown.
Concerns are already being expressed about what will happen to the 180 Goodyear AutoCare locations that the company operates nationwide.
According to Goodyear Asia Pacific president Nathaniel Madarang, the plant closure in Shah Alam is part of the 'Goodyear Forward' transformation program aimed at optimising the company's footprint and portfolio, achieving significant margin expansion, and enhancing shareholder value.
In a widely circulated memo on social media platforms, Madarang emphasised that this programme involves specific measures to achieve annualised cost reductions of US$1 billion by 2025, ensuring Goodyear's competitiveness and its position 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.
"As with any facility closure, there will be an associate impact, and in this case, approximately 550 positions in our Malaysia operations will be affected.
"We are committed to treating our associates with respect and transparency during this process," Madarang said.
Business Times has reached out to Goodyear for further clarification regarding the memo, but the company has yet to respond to our inquiries.
In the memo, Madarang emphasised that such decisions are not made lightly but are necessary to advance the long-term interests of both the company and its customers.
"Thank you for your continued focus on delivering results and for all you do to make Goodyear successful," he noted.
The Goodyear Orient Company, a rubber purchasing company founded in Singapore in 1908 to acquire rubber from plantations in what was then Malaya and Indonesia. Goodyear's website stated that the company started selling its goods here in 1929.