End of the line for Goodyear’s Union City plant
Tyre production at Goodyear’s Union City, Tennessee plant has come to an end. Plans to close the factory by the end of the year were announced in February, yet production has ceased even soon, it appears, than the tyre maker itself originally anticipated. “When we announced our intention to close the plant, we expected the shutdown would occur by year-end,” stated Goodyear chairman and CEO Richard J. Kramer. “Since then, the product transfers to the other Goodyear plants have been completed more quickly than expected. We are now able to meet the needs of our consumer tyre customers without further production in Union City.”
Goodyear says the plant closure “is consistent with plans outlined at the company’s investor meeting earlier this year.” As a result of the accelerated closure and legally required payments to some 1,800 employees, Goodyear expects to record additional after-tax charges of approximately US$20 million. The majority of these additional charges will be recorded in the second quarter of 2011.