Goodyear is set to close its tyre manufacturing plant in Kariega in the Eastern Cape, and it could affect as many as 900 jobs at the facility, not to mention the knock-on effect it would have on the economy of the Eastern Cape, which is already suffering from high unemployment.
As a global organisation, Goodyear in South Africa forms part of Goodyear Tyre & Rubber Holdings reporting into the Europe, Middle East and Africa (EMEA) region, as part of the Emerging Markets cluster. Goodyear in South Africa is represented through Goodyear South Africa (Pty) Ltd and Hi-Q Automotive (Pty) Ltd.
Although it is only the manufacturing that will be halted, the sale and distribution of tyres from the brand will continue through its Hi-Q and other tyre outlets, according to various media reports.
In an official statement issued to the media, Goodyear says it is transforming its go-to-market strategy in the Europe, Middle East and Africa region to optimise its footprint and portfolio.
“As part of that transformation, Goodyear South Africa is launching a restructuring process in accordance with the provisions of the Labour Relations Act to address proposals regarding the closure of its manufacturing facility in South Africa and the realignment of certain sales, administration and general management functions.
“Goodyear South Africa will continue to maintain a sales, distribution and Hi-Q retail presence in South Africa. This proposal is in no way a reflection of the commendable efforts or the years of dedication of our South Africa team, for which we are grateful,” the statement read according to media outlets.
Goodyear, which has been in South Africa since 1918, began local manufacturing in 1947. Among a wide range of tyres manufactured locally, is the unique Off-The-Road (OTR) Bias tyre, used in heavy-duty applications like mining and construction vehicles, of which the Kariega plant was the sole producer.
It also exports tyres and was one of the four local tyre manufacturers alongside Bridgestone (Bridgestone and Firestone), Sumitomo Rubber SA (Dunlop, Sumitomo and Falken), and Continental (Continental and General).
Some figures indicate that around 16 million tyres are sold locally every year of which 11 million are produced in South Africa by the four tyre OEMs, while 5 million tyres are imported.
Goodyear South Africa appointed Paul Gerrad as its new Managing Director about a year ago on 1 May 2024.
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