Goodyear has announced plans to shut its only factory in South Africa.
Image: File
Tyre manufacturer Goodyear is set to close its only factory in South Africa.
The company says it has initiated a Section 189A process that will result in the closure of its plant in Kariega, in the Eastern Cape, which first opened its doors in 1947.
The move is expected to result in the loss of around 900 factory jobs, with a number of sales, administrative, and management roles also being in jeopardy.
In a statement issued to the media, Goodyear South Africa said it would continue to maintain a distribution and retail presence in South Africa.
The company said the restructuring was in line with its strategy to “optimise” its footprint and portfolio in the Europe, Middle East and Africa region.
Big concerns for Kariega
However, the move has, quite rightfully, been slammed by organisations such as the National Union of Metalworkers (NUMSA), which said it was dismayed at the announcement, which will result in the loss of at least 907 jobs.
“We are deeply worried about the impact on workers and their families, in Uitenhage (Kariega). It is becoming a ghost town given that ContiTech, which is part of Continental, closed down and it is also in the same tyre and rubber industry.
“At the same time, it may not be easy to replace these jobs. The Eastern Cape has a very high unemployment rate at 41.9% according to StatsSA.
“Whilst the outlook is bleak, as NUMSA, we stand ready to do everything we can to defend the jobs of our members, and to do all we can to negotiate fair severance packages. The dates of the first consultation will be communicated in due course,” Numsa added
IOL