The Goodyear Tyre & Rubber Company on Monday announced plans to close the tyre manufacturing factory in Huntsville, Alabama, by December 5, 2003. The closure will affect approximately 1,100 hourly and salaried workers at the facility.
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Goodyear, in the fourth quarter of 2003, will record rationalisation charges of about $US155 million and an accelerated depreciation charge of $100 million in connection with the closing. The company estimates the total cash payments to be approximately $85 million, $65 million of which will be expended over the next three years. Goodyear anticipates annualised savings of approximately $100 million.
“The decision to close the Huntsville plant is based on Goodyear’s
need to reduce capacity in North America,” said North American Tyre business unit president Jonathan Rich. “The Huntsville facility has been one of our highest cost plants to operate. This difficult action is another necessary step in our turnaround plan for North America.”
“We realise that this is a very difficult time for our [workers], their families and the community of Huntsville,” added Rich. “We will provide resources to help our associates through this transition as they seek other employment opportunities.”
Hourly workers will be given priority consideration for preferential hire at the Goodyear tyre plant in Gadsden, Alabama. Workers who are not hired at other Goodyear facilities, and those who choose to retire, will receive additional benefits as part of the closure. Outplacement services and vocational training benefits will also be provided to affected workers.
The tyre lines currently produced in Huntsville will be transferred to other Goodyear facilities in the United States.
