Goodyear Malaysia is working with the government to ensure support for about 550 workers who will be affected by the shutdown of the company’s manufacturing plant.
The Investment, Trade, and Industry Ministry (Miti) and the Malaysian Investment Development Authority (Mida) are facilitating job placements as well as upskilling and reskilling programmes for the affected workforce, said Mida corporate communications director Fatmah Ahmad.
“Importantly, Goodyear, alongside its shareholders, has been in close coordination with the government well before this decision was publicised, working diligently to establish a support framework for the employees,” she said in a statement.
This came after a purportedly leaked internal memo went viral, indicating that Goodyear Malaysia would be closing its 52-year-old manufacturing plant in Shah Alam, Selangor.
Yesterday, Selangor Menteri Besar Amirudin Shari said Malaysia was not the only country that would see Goodyear closing its operations.
Instead, the tyre maker’s annual report showed that it had been laying off its workers across several continents and shut down its plant in Ohio, United States last year, he said in the Dewan Rakyat.
Meanwhile, according to Fatmah, Goodyear has been operating at a loss since 2017, which prompted a strategic move towards optimising operations.
“This development is part of Goodyear’s global move aimed to achieve USD1.0 billion in annualised cost savings by 2025,” she said.
“As part of its restructuring, Goodyear has indicated plans to transition from manufacturing to a distributor business model, focusing on premium profitable segments, building capability in sales and marketing, strengthening the distribution network, and improving the cost structure,” she added.
The job placement initiative is being done through the newly formed Invest Malaysia Facilitation Centre, by Mida, along with the Social Security Organisation (Socso) and the Department of Labour.
“In helping affected parties for job placement, previous efforts have been shown (to be) effective, turning challenges into opportunities,” she said.
Yesterday, former minister Rafidah Aziz reacted to the matter with shock, urging the government to respond quickly so that industrial and business entities in Malaysia do not close shop and leave for other countries.
The viral post showed Goodyear Tire & Rubber Company’s Asia Pacific president Nathaniel Madarang saying the closure was part of the company’s “transformation programme” and that about 550 positions in its Malaysian operations will be affected.
Collaboration with several companies
Meanwhile, Goodyear is currently collaborating with several companies, including Proton Holdings Bhd to employ its workers who are affected by the closure of its factory in Shah Alam.
Bernama reported Investment, Trade and Industry Minister Tengku Zafrul Abdul Aziz as saying that the company has taken steps to ensure a smooth transition for its workers.
“The closure of the Shah Alam factory is part of the cost-cutting measures undertaken by the company as it is targeting a cost reduction of up to US$1 billion per annum.
"Goodyear is also set to close two tyre factories in Germany, affecting 1,750 workers. A tyre factory in the United Kingdom is also slated for closure, so it's not just the operations in Malaysia that are affected, but Goodyear's operations worldwide are also impacted," he said on X on Friday. - Mkini
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