Tennessee offers Goodyear's Union City plant $2 million

ERJ staff report (TB)

Union City, Tennessee -- Goodyear is considering a “no strings attached” $2 million offer from the state of Tennessee to invest in operations and equipment upgrades at its Union City passenger and light truck tyre plant, a spokeswoman for the tyre maker said.

The deal among the Union City plant, United Steelworkers (USW) Local 878 leaders, state Representative. Judy Barker and the Tennessee Department of Community and Economic Development has not yet been accepted, as Goodyear is waiting to make a decision until it finishes evaluating capital requirements for the operation in the upcoming year.

As of now, there is no timeline of acceptance or denial for the monetary offer, but the spokeswoman said Goodyear is considering the package in its planning process.

The factory is under a four-year labor contract with the USW ratified Sept. 18, 2009. However, under the contract, it is the only one of Goodyear's seven US plants that remains unprotected from closure. Under that pact, about 500 associates at the plant accepted buyouts last year.

Akron-based Goodyear has been moving tyre-building equipment from Union City to its plant in Lawton, Okla., during the course of the year, but the company has not announced plans to close the Union City plant.

From Tire Business (A Crain publication)