(March 7): American tyre company Goodyear said on Thursday it will continue to sell their products in Malaysia following the closure of its manufacturing plant in Shah Alam, Selangor.
"We will continue to serve the Malaysia market with our industry-leading products and solutions from other manufacturing sites within Goodyear's footprint," the spokesperson said on Thursday.
The company plans to begin shutting down its Shah Alam manufacturing operations by June 30 in a move that will result in the loss of 550 positions within the plant, according to an internal memo written by Nathaniel Madarang, president of Goodyear Asia Pacific, sighted by The Edge.
The move mirrors electrical home appliance maker Panasonic Manufacturing Malaysia Bhd's decision last year to close two product manufacturing departments in Shah Alam. In 2016, cigarette firm British American Tobacco Malaysia Bhd wound down its factory operations in Malaysia and started importing regionally.
Goodyear's presence 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 then Malaya and Indonesia. Goodyear began selling its products in Malaya in 1929, according to its website.
Goodyear's Madarang said the entire closure process is anticipated to complete by the end of the year.
The move, he said, is part of the so-called Goodyear Forward, the company's transformation programme to optimise its footprint and portfolio and deliver significant margin expansion.
The programme includes "specific actions" to deliver annualised cost reductions of US$1 billion by 2025, according to Madarang's memo.