Goodyear to close plants in UK and Poland, to cut 1,500 jobs |
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Published
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Wed, 05 Apr 2006 20:25
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CHICAGO - Goodyear Tire & Rubber Co. has announced that it will be closing unprofitable plants in the UK and Poland as a part of its cost-reduction operations across the globe. The largest tyre company in the world said that the move would result in about 1,500 job losses.
The company said that it would be saving $50 million per year as a result of these steps. It added that the overall pre-tax charges are expected to be somewhere between $105 million to $115 million. This amount would include $55 million in the first and second quarters of the current year.
The Akron, Ohio-based Company also said that it had started the process of closing down its Goodyear Dunlop Tyres UK passenger tire factory located in Washington in northeast England. About 600 jobs will be lost as a result of this move and the company also said that it had begun talks with unions about the job losses.
Goodyear also announced that it's bicycle tyre manufacturing unit in Debica, Poland would also be shut down resulting in 360 job loses. The remaining job losses would be in logistics, retail and administrative areas across European Union and Asia Pacific regions, Goodyear confirmed.
This particular plan of cost-reduction was initiated last year and plans to save around $1 billion over the next few years. Goodyear has recovered to post profits in 2004 and 2005 after reporting massive losses of over $2 billion in the preceding years. The company has plans to cut high manufacturing capacity and move its operations to countries that have low labour costs.
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