Goodyear Tire & Rubber to Close Two German Plants
By Sabela Ojea
Goodyear Tire & Rubber will shut down two of its manufacturing facilities in Germany as part of a turnaround plan in Europe, the Middle East and Africa, according to a Securities and Exchange Commission filing.
The tire manufacturer on Thursday said its Fürstenwalde and Fulda plants will be permanently closed to lower its production expenses and improve its competitive position in the EMEA region, leading to about 1,750 job reductions.
The cost-cutting plan, approved on Nov. 15, replaces measures that dated back to May 31 to reduce production at Fulda by about 50%.
The company expects pretax costs associated with the plan of $575 million to $600 million. The majority of the expenses are forecast to be booked by 2025 and the remaining by the end of 2027.
Goodyear Tire & Rubber also said it seeks to achieve annual run-rate savings of about $60 million by the end of 2025, $100 million by the end of 2026, and $120 million by the end of 2027.
The company has three other manufacturing sites in Germany, located in Hanau, Riesa and Wittlich, according to its website.
On Wednesday, Goodyear announced it was exploring strategic alternatives for some units, including its chemical business and Dunlop brand of tires, as it optimizes its portfolio.
Write to Sabela Ojea at sabela.ojea@wsj.com; @sabelaojeaguix
(END) Dow Jones Newswires
November 16, 2023 17:31 ET (22:31 GMT)
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