Goodyear aims to close NZ tyre plant, lose 438 jobs

Lower Hutt, New Zealand - Goodyear has initiated discussions with employees and unions with the aim of closing its only tyre plant in New Zealand. The move is part of a plan to save up to $150 million (€110 million) in costs over the next three years.

The plant, just outside Wellington, makes about 2 million passenger car tyres per year and employs about 438 people. Goodyear said it expects the plant to close either late this year or in the first couple of months of 2007. The company said it is one of Asia-Pacific region's highest cost plants and the company expects to accrue savings of $15 million per year following the closing. Costs associated with the move will amount to some $35 million, said the company.

The plant is part of Goodyear's South Pacific Tyres subsidiary. Goodyear bought full control of SPT from its former partner, Ansell Ltd, in January of this year. SPT has annual sales of $700 million and employs 4000 in Australia and New Zealand. SPT operates three plants in Australia as well as the Wellington factory.

The only other tyre factory in New Zealand is in Christchurch and is operated by Bridgestone-Firestone.

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Press releasefrom Goodyear

Lower Hutt tyre factory to close - 438 jobs to go Radio New Zealand (NZ)

Workers vow to fight for their jobs at tyre factory Radio New Zealand (NZ)

Factory may close cutting 430 jobs One news (NZ)

Tyre factory to close with loss of 430 jobs NZ Herald (NZ)