Tire Maker Goodyear to Shut Down Manufacturing Plant in Malaysia

By Jace Dela Cruz

Mar 08, 2024 03:58 AM EST

Goodyear Tire & Rubber Co, one of the leading tire manufacturers globally, is closing its manufacturing plant in Malaysia by June 30, impacting over 500 employees.

The logo of US tyre manufacturer Goodyear is seen at a garage in Caracas, on December 11, 2018. - US tyre manufacturer Goodyear announced on December 10 the cessation of its operations in Venezuela, adding to the closure of other multinationals as a result of a severe crisis reflected in hyperinflation and shortage of raw materials.
(Photo : FEDERICO PARRA/AFP via Getty Images)

Goodyear to Shut Down its Facility in Malaysia

According to Reuters, the tire maker's decision to shut down its facility in the Shah Alam district of Selangor state was part of its Goodyear Forward broader corporate restructuring initiative, which aims to achieve $1 billion in cost reductions by 2025.

Despite the plant's closure, the company said it remains committed to serving the Malaysian market by offering its products and solutions from other manufacturing sites within Goodyear's network.

Closure of Goodyear Malaysia to Affect 550 Workers

The Malaysian Investment Development Authority (MIDA) disclosed that the closure would directly impact around 550 employees. In response, the Malaysian government and Goodyear have been collaborating to devise a support framework to assist affected workers.

This framework includes initiatives such as upskilling and reskilling programs and facilitating job placements for the affected employees.

Goodyear's Malaysian manufacturing plant has been embroiled in allegations of labor abuses in recent years, including issues such as unpaid wages, excessive overtime, and threats against migrant workers.

In 2022, the company reached a settlement agreement with workers, compensating each affected employee with amounts ranging from 50,000 to 200,000 ringgit ($10,660 to $42,644) based on their length of service.

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