Goodyear to close Australian tyre plant
Akron, Ohio -- The Goodyear Tire & Rubber Company is to close its Australian manufacturing facility as part of its strategy to reduce high-cost manufacturing capacity globally. The move will affect around 600 employees. Goodyear expects the unit toclose before the end of 2008.
This action will eliminate approximately 3 million units of high-cost capacity and provide Goodyear with annual cost savings of approximately $35 million.
This completes our commitment to reduce high-cost capacity by about 25 million units and achieve annual cost savings of more than $150 million," said Goodyear Chairman and Chief Executive Officer Robert J. Keegan. "Going forward, our efforts will be focused on increasing production of high-value-added tyres in low-cost operations to support growth in these segments in Asia-Pacific markets, including Australia and New Zealand."
"Goodyear and South Pacific Tyres remain committed to their customers and a strong and ongoing product, retail and wholesale presence in Australia," said SPT Chief Executive Officer Judith Swales.
Total restructuring and accelerated depreciation charges for this action are estimated to be approximately $125 million after tax, of which approximately $85 million is for cash charges. Goodyear anticipates recording charges of approximately $75 million after tax in the second quarter of 2008.
Formed in 1987 as a joint venture, SPT has been wholly owned by Goodyear since 2006. The leading tire maker and marketer in Australia, it has more than 3,000 associates. Its results have been consolidated with those of Goodyear's Asia Pacific region since 2004.
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Press release from Goodyear
Goodyear Tire & Rubber Plans To Close Australian Plant RTT News (Australia)
Tyre factory to close, 600 jobs lost Sydney Morning Herald (Australia)
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