Goodyear to close tyre factory in Washington, UK

Akron, Ohio -- The Goodyear Tire & Rubber Company today said it intends to close its Goodyear Dunlop Tyres passenger car tyre factory in Washington, United Kingdom as part of its strategy to reduce costs in its worldwide

operations.

The company has begun consultation with union representatives. This action is expected to create annual savings of approximately $20 million and result in charges of between $75 million and $85 million ($55 million to $65 million after-tax). The cash portion of this charge is estimated to be $35 million to $40 million.

In addition, Goodyear will cease production of bicycle tyres and inner tubes at its Debica, Poland, facility. Cost reduction actions in logistics, retail and administration will be taken in the company's European Union, Asia Pacific and Engineered Products business units.

In total, the actions are expected to eliminate about 1500 positions, create annual savings of between $40 million and $50 million ($30 million to $40 million after tax) and result in a charge of between $105 million and $115 million ($75 million to $85 million after tax).