Goodyear to Close Canadian Plant
The Goodyear Tire & Rubber Company has announced its intention to discontinue the production of tyres at its facility in Quebec, Canada and transfer operations to a materials mixing centre. The changeover will take place by the end of the second quarter of 2007.
This decision comes as part of Goodyear’s global strategy of cost reduction, and will see a net job reduction of 800 hourly and salaried staff. The current plant in Valleyfield, Quebec employs approximately 1,000 persons.
President of Goodyear’s North American operations, Jon Rich, believes the closure to be vital to Goodyear’s ongoing viability. “In today’s intensely competitive and increasingly global business environment, we face some very difficult choices,” he said. “The decision to discontinue tire production at Valleyfield is one of those necessary steps to make Goodyear more competitive. This decision does not reflect on the commitment or performance of our Valleyfield associates.”
The cessation of tyre production at the Valleyfield plant will reduce Goodyear’s production of what the company refers to as ‘excess high cost tyres’ by a further seven million units. This brings total reductions to 21 million units. Combined with Goodyear’s previously announced closures in New Zealand and at the Tyler, Texas plant, the closer of the company’s Quebec facility will bring the company a projected annual saving of US$125 million.