Some 550 workers affected.
One of the country’s leading tyre manufacturers, Goodyear, said it will be closing down its plant in Shah Alam starting June 30 this year, affecting some 550 positions.
Goodyear’s Asia Pacific president Nathaniel Madarang said that the decision was part of its “transformation” programme to cut costs and remain competitive in the market.
“Goodyear Forward is a transformation programme designed to optimise our footprint and portfolio, deliver significant margin expansion and create shareholder value. This programme includes specific actions to deliver annualised cost reductions of US$1 billion (RM4.7 billion) by 2025, ensuring we remain competitive and positioned as an industry leader.
“As part of these efforts, Goodyear has made the difficult but necessary decision to close our manufacturing plant in Shah Alam, Malaysia, effective June 30, 2024, with closure expected to be complete by the end of the year,” he said in a statement.
“These decisions are not made lightly, but we need to take them to advance the long-term interests of both our business and customers,” he said, adding that the approximately 550 positions in their Malaysia operations will be treated with respect and transparency during this process.
According to its website, Goodyear’s involvement in Malaysia dates back to 1908 when The Goodyear Orient Company, a rubber-buying firm, was established in Singapore to purchase rubber from plantations in Malaysia and Indonesia.
The sales of Goodyear products in Malaysia began in 1929 through the office of the Goodyear Sales Company, which was established in Singapore.
Goodyear’s tyres were also fitted in Malaysia’s first locally produced car, the Proton Saga back in 1985.
It will continue to serve the local market with tyres imported from its plants in Thailand, Indonesia, China, and Taiwan.
Meanwhile, ex-minister Rafidah Aziz has reacted to a viral post on social media on the closing of the Goodyear plant.
“It was an unexpected shock to read in the media, about a long-time entity in the industrial sector, Goodyear having decided to close its operations in Malaysia. It must give us pause to understand why.
“The government must quickly respond to such developments. While touting billions of possible investments, expectations being mooted and discussed, it is so important that industrial and business entities which are already here do not close shop and leave for other countries,” Rafidah told Malaysiakini, referencing the adage that a bird in hand was worth two in the bush.
She said Malaysia must never rely on the signing of memorandums of understanding but should ensure there are serious memorandums of undertaking that include details and commitments to the site location and workforce.
“The location of the site, the structure of the workforce, such as managerial and executive, skilled workers and unskilled workers, whether the product is export-oriented and/or for domestic market.
“The volume and value of annual expected sales, any joint ventures, and other relevant information should be included in any memorandum of undertaking, particularly if the prime minister or a minister is a witness,” added Rafidah, who served as international trade and industry minister from 1987 to 2008.
In the internal memo which was purportedly leaked, Goodyear Tire & Rubber Company’s Asia Pacific president Nathaniel Madarang said the closure was part of the company’s “transformation programme”.
Rafidah called on the government to disclose how many companies have shut down operations in Malaysia.
“Where have they moved to? Why have they stopped operations in Malaysia?
“Analyse what was the push factor which drove them to shut down, and to add insult to injury, relocate elsewhere,” she said.