15 Jan 2007
Akron, Ohio -- Goodyear will close its 35-year-old tyre plant in Casablanca, Morocco, during 2007 and will take a charge against earnings of about $28 million to cover the related expenses.
The closing of the plant and subsequent liquidation of Goodyear Maroc SA will save the company about $10 million a year, the firm said in a recent 8-K filing with the Securities and Exchange Commission.
The plant employs approximately 150. Capacity was listed as 3000 units a day of car, light and medium truck and agricultural tyres.
About $16 million of the charges will be cash related to severance payments and payments to minority shareholders; Goodyear owns 55 percent of Goodyear Maroc. The rest will be related to asset write-offs.
The charges will be recorded in the firm's fiscal 2006 fourth quarter.
From Rubber & Plastics News (A Crain publication)
Subscribe for unlimited access. A subscription to European Rubber Journal includes:
Already a subscriber? Log in here
