• Twitter
  • Facebook
  • Instagram
  • Subscribe
  • Free Newsletter
  • My account
  • Log In
Tyrepress
  • 0Shopping Cart
  • NewsNews
    • Latest News
    • All Headlines
    • Company News
    • UK News
    • Product News
    • International News
    • Retreading
    • Career Tracks
    • Motorsport
    • Video
    • Tyrepress Videos
  • Data
    • Leading Tyre Manufacturers
    • Leading Retailers (UK)
    • Social Media Ranking
    • Online Branding
    • Brand Finance rankings
    • Blue Light Fleet Analysis
    • Astutus Research analysis
    • Premium Report
  • Features
    • Tyre Industry Conference 2020
    • Online Tyre Business 2020
    • Aftermarket 2020
    • Tyre Recycling 2020
    • Kick-starting your business webinar May 2020
  • Business Directory
    • Browse Entries
    • List Your Company on the Business Directory
  • Jobs
    • Situations vacant
    • Career Tracks
  • Classifieds
  • Magazine
    • Latest Issue
    • Read Tyres & Accessories Magazine online
    • Magazine Archive
  • Shop
    • Subscription Shop
    • Report Shop
    • Directory Shop
  • About
    • Company Profile
    • Media Information
    • Frequently Asked Questions (FAQs)
    • Legal
    • Contact Us
  • Search
  • Menu
You are here: Home1 / News2 / Product News3 / Goodyear to Close Australian Factory by End of Year

Goodyear to Close Australian Factory by End of Year

Date: 26th June 2008 Author: Admin Comments: 0

Goodyear’s sole new tyre manufacturing facility in Australia is to close, announced Goodyear Tire & Rubber on June 25. The company states the closure of the Somerton plant in the North of Melbourne, Victoria will take place before the end of the year and is occurring as part of Goodyear’s global strategy to reduce high-cost manufacturing capacity and replace this with a more cost-effective supply of products. The elimination of Somerton’s output will reduce this high-cost capacity by approximately 3 million units per annum, with annual cost savings of around US$35 million. Up to 587 workers will be made redundant.

“This completes our commitment to reduce high-cost capacity by about 25 million units and achieve annual cost savings of more than $150 million,” said Goodyear chairman and chief executive officer Robert J. Keegan. “Going forward, our efforts will be focused on increasing production of high-value-added tyres in low-cost operations to support growth in these segments in Asia-Pacific markets, including Australia and New Zealand.”

South Pacific Tyres (SPT) is beginning talks with the affected workers and union representatives regarding the plan. “South Pacific Tyres respects the role of various unions in representing its workforce and will engage and collaborate with associates and their unions to ensure a smooth transition,” said SPT chief executive officer Judith Swales. “South Pacific tyres recognises the potential economic and social repercussions of this announcement and will work with local and state governments as appropriate to ease its effect.”

“Goodyear and South Pacific Tyres remain committed to their customers and a strong and ongoing product, retail and wholesale presence in Australia,” Swales added. “Despite the best efforts of our manufacturing workers and their improvements in the area of quality, safety and waste, the Somerton factory is still not cost competitive. While the plant has capacity to produce around 10,000 tyres per day, it is not able to produce the high-value-added tyres that foreign and domestic consumers are demanding in record numbers.”

Total restructuring and accelerated depreciation charges for this action are estimated to be approximately $125 million after tax, of which approximately $85 million is for cash charges. Goodyear anticipates recording charges of approximately $75 million after tax in the second quarter of 2008.

Related news:

  1. Goodyear to Invest $18 Million on Expansion in India
  2. Goodyear To Close New Zealand Tyre Plant
  3. Goodyear’s South Pacific Tyres Acquisition Complete
  4. Apollo Showcases Concept Tyres Tyrexpo Asia ‘07
Comments
Comments closed
Share this entry
  • Share on Facebook
  • Share on Twitter
  • Share on LinkedIn
  • Per E-Mail teilen

Related Tags

Asia, Australia and New Zealand, Manufacturing, Product News, retail, rubber, wholesale

Advert Location 28

Top five articles this week

Advert Location 10

© 2020 - Tyrepress
  • Twitter
  • Facebook
  • Instagram
  • WhatTyre
  • Reifenpresse
  • PneusNews
Amtel-Vredestein Warns of Counterfeit Tyres ADL Releases Catalogue, Receives ISO Certification
Scroll to top