Goodyear Shutting Down Malaysia Shah Alam Factory

Goodyear Shutting Down Malaysia Shah Alam Factory

Goodyear is shutting down its Malaysia Shah Alam Factory by the end of June 2024, and this closure may affect 550 positions.

In a move that marks the end of an era, Goodyear Tire & Rubber Company has announced the closure of its manufacturing plant in Shah Alam, Malaysia.

This decision is part of the company’s “Goodyear Forward” transformation plan, aimed at ensuring competitiveness in the future.

The Shah Alam facility, operational since 1972, has been an integral part of Goodyear’s history. It played a pivotal role in supplying tyres for Malaysia’s first national car, the Proton Saga, in 1985. Additionally, it was the first Goodyear factory globally to receive ISO 9002 certification in 1992.

The closure of the plant, effective June 30, 2024, will impact 550 positions associated with the factory. Despite the shutdown, Goodyear will continue its sales and marketing operations in Malaysia.

This development also has implications for local automakers like Perodua, which may now have to seek tyre supplies from alternative sources, such as Toyo or Continental, the remaining companies with local production.

Nathaniel Madarang, Goodyear’s Asia Pacific president, shared the news of the closure with associates, emphasizing the company’s commitment to treating affected employees with respect and transparency.

While the closure is a difficult decision, it is part of Goodyear’s broader strategy to optimise its footprint and portfolio, aiming for significant margin expansion and shareholder value creation. 

The company aims to achieve annualized cost reductions of USD 1.0 billion by 2025 as part of its transformation efforts.

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Sean Loo

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