Amirudin says Goodyear cutting down operations globally

 

Amirudin Shari said Goodyear had made a number of cutbacks globally in an attempt to keep up with the likes of Bridgestone and Michelin. (Bernama pic)

KUALA LUMPUR: Goodyear has been restructuring its global operations since 2023, which has forced it to close a number of factories including its Shah Alam plant, Amirudin Shari (PH-Gombak) said.

Following Goodyear’s statement yesterday that it will close down its factory in Shah Alam in June, Amirudin said the tyre manufacturer shut down a factory in Ohio in the US and axed 1,200 workers across Eastern Europe, Africa and Asia in 2023.

He said the cuts were part of Goodyear’s business restructuring process, with the company claiming it is unable to compete with other tyre manufacturers like Bridgestone and Michelin.

“I have read the annual report on why it closed and reorganised everything. It needs to rearrange (business operations), the costs are high, while labour costs in countries like Vietnam are low,” Amirudin, who is also the Selangor menteri besar, said when debating the royal address in the Dewan Rakyat.

Yesterday, Goodyear Asia Pacific president Nathaniel Madarang said closing the Shah Alam plant would affect 550 employees, but was a necessary move to streamline the company’s operations.

The factory in Shah Alam started operating in 1972, although Goodyear has been present in Malaya since 1929. It also supplied tyres for the Proton Saga when it first rolled off the production lines in 1985.

Following the announcement, former international trade and industry minister Rafidah Aziz told the government to respond quickly to the unfolding developments.

Rafidah said the government should obtain comprehensive information about the number of companies that have ceased operations in Malaysia and analyse the factors behind these closures. - FMT