Goodyear expects $270m annual gain from North Carolina plant closure

Akron, Ohio — Goodyear expects the planned closure of its Fayetteville, North Carolina tire plant (ERJ report) to improve operating income in its Americas business by around $270 million (€235 million) a year from 2028.

In a 21 July SEC filing with the US Securities and Exchange Commission (SEC), the tire maker said it had reached an agreement with the United Steelworkers to proceed with the restructuring.

The agreement, inked 16 July, clears the way for the permanent closure of the facility, which is expected to be substantially completed by the end of 2027.

According to Goodyear, the move will eliminate approximately 1,750 jobs and is intended to reduce production capacity and lower production costs in the Americas.

Goodyear said it estimated total pre-tax restructuring charges of $535 million to $565 million, including $190 million to $210 million in cash charges, primarily related to employee severance and other exit costs.

The remaining charges comprise mainly $290 million to $310 million in non-cash asset-related charges, including accelerated depreciation, and $40 million to $50 million in pension special termination benefits.

The company expects to record $205 million to $225 million of the charges in the third quarter of 2026, with a further $65 million to $85 million recognised during the remainder of the year.

Most cash outflows are expected to occur by the end of 2027.

According to the filing, the restructuring is expected to improve operating income in the Americas segment by $90 million in 2027, rising to $270 million annually from 2028 onwards.