Goodyear Malaysia has announced the closure of its manufacturing plant in Shah Alam, effective June 30, 2024, with the process expected to be completed by the year’s end. This move will impact approximately 550 jobs, according to a leaked internal memo from Nathaniel Madarang, The Goodyear Tire & Rubber Company’s Asia Pacific president.
The decision is part of Goodyear’s “transformation programme,” known as Goodyear Forward, aimed at optimising the company’s footprint and portfolio, and delivering significant margin expansion.
The program targets annualised cost reductions of USD1.0 billion by 2025 to maintain competitiveness and leadership in the industry.
Established in 1972, the Shah Alam plant has been a longstanding part of Goodyear’s operations in the region.
Goodyear’s involvement in Malaysia dates back to 1929 when sales of its products began through the office of the Goodyear Sales Company in Singapore.
Notably, Goodyear tires were fitted in Malaysia’s first locally produced car, the Proton Saga, in 1985.
This decision comes after Goodyear reached an agreement in 2022 to settle a labor dispute at the Shah Alam factory with migrant workers who alleged unpaid wages and benefits.
Each worker settled for amounts ranging from RM50,000 to RM200,000, depending on their length of employment.
The closure of the Shah Alam plant reflects Goodyear’s strategic restructuring efforts as it navigates market challenges and seeks to optimise its operations in the Asia Pacific region.
