Goodyear closes Tennessee plant
The Goodyear Tire & Rubber Co. announced it has ceased production at its tire manufacturing facility in Union City, Tenn. On Feb. 10, 2011, Goodyear had announced its intention to close the plant by the end of 2011 (see Goodyear announces financial results, plans to close plant).
“When we announced our intention to close the plant, we expected the shutdown would occur by year-end,” said Goodyear Chairman and Chief Executive Officer Richard Kramer. “Since then, the product transfers to the other Goodyear plants have been completed more quickly than expected. We are now able to meet the needs of our consumer tire customers without further production in Union City.”
This action is consistent with plans outlined at the company’s investor meeting earlier this year.
As a result of the accelerated closure and payments to approximately 1,800 associates under the federal Worker Adjustment and Retraining Notification Act, Goodyear expects to record additional after-tax charges of approximately $20 million. The majority of these additional charges will be recorded in the second quarter of 2011.
Additional information, including details on the timing of charges and savings, will be provided in conjunction with Goodyear’s second quarter 2011 earnings announcement. Also see Closure of plant plays into Goodyear's 'selective strategies for additional details.