Goodyear to shut down South African manufacturing operations, 900 jobs at risk

The American tyre giant Goodyear has announced plans to cease manufacturing operations at its Kariega facility in the Eastern Cape, potentially impacting up to 900 employees.

The closure threatens to worsen unemployment levels in a province already grappling with significant joblessness.

The decision forms part of Goodyear's broader strategic overhaul across its Europe, Middle East and Africa (EMEA) operations. In South Africa, the company operates through Goodyear South Africa (Pty) Ltd and Hi-Q Automotive (Pty) Ltd, both falling under the EMEA region's Emerging Markets division.

While manufacturing will end, Goodyear intends to maintain its retail and distribution network through Hi-Q outlets and other authorized dealers across the country, according to their statement.

The company's official communication describes the move as part of efforts to "optimise its footprint and portfolio" within the EMEA region. Goodyear South Africa has initiated formal restructuring proceedings under South Africa's Labour Relations Act, addressing both the plant closure and reorganization of sales, administrative, and management roles.

"Goodyear South Africa will continue to maintain a sales and distribution, and Hi-Qretail presence in South Africa," the company stated, emphasizing that the decisiondoesn't reflect poorly on their local workforce's dedication over the years.

The closure marks the end of an era for a company with deep South African roots.Goodyear established its presence in the country in 1918 and commenced localproduction in 1947. The Kariega plant held particular significance as the exclusivemanufacturer of specialized Off-The-Road (OTR) Bias tyres, essential for heavy-duty mining and construction equipment.

Beyond serving domestic markets, the facility also contributed to Goodyear's export operations. The company was among four major tyre producers in South Africa, competing alongside Bridgestone (producing Bridgestone and Firestone brands), Sumitomo Rubber SA (manufacturing Dunlop, Sumitomo, and Falken tyres), and Continental (producing Continental and General tyres).

Industry data suggests South Africa's annual tyre market encompasses approximately 16 million units, with local manufacturers producing 11 million tyres while 5 million are imported to meet demand.

The restructuring comes roughly one year after Paul Gerrad assumed the role of Managing Director for Goodyear South Africa on May 1, 2024.

Our sister publication Dealerfloor, who ran the original article, attempted to obtaincommentary from the South African Tyre Manufacturers Conference (SATMC), which represents the four domestic manufacturers, but had not received a response at the time of publication.