Goodyear South Africa (SA) has initiated a Section 189A process, related to a restructuring process that includes the tyre manufacturer’s operations in Kariega.

The Nelson Mandela Bay (NMB) Business Chamber says it is deeply saddened at the proposed closure of the Goodyear tyre plant.

“This comes just months after ContiTech announced that it is closing its plant, and the Bridgestone plant closure of over four years ago,” says CEO Denise van Huyssteen. 

“This highlights the massive pressure which tyre manufacturers are under due to issues such as logistics challenges; a lack of service delivery at a municipal level; inadequate maintenance of electricity, water and sanitation infrastructure; increased costs relating to safety and security; above inflation input costs for essential services such as electricity; as well as cheap tyre imports which are flooding the market.

“It is now cheaper to import tyres from Asian markets than to manufacture them locally in South Africa,” she emphasises. 

“Unfortunately the anti-dumping measures on tyres have been ineffective, resulting in loopholes, which has exacerbated the issue.

“It is vital that urgent action is taken by the various stakeholders to ensure that de-industrialisation does not take place, and that we retain and strengthen the manufacturing expertise which we have in South Africa,” says Van Huyssteen.

“This is particularly important considering the number of jobs linked to manufacturers and the eco-system which supports these operations.”

Van Huyssteen adds that the business chamber remains concerned about the viability of the manufacturing sector in general, owing to basic enablers not being in place, as well as the impact of the US’s tariff policies on global manufacturing footprints.

“Manufacturers will realign their operations so that they build in those locations that are the most competitive. 

“This means that multinationals based in South Africa are competing within their own operations with other markets for their future survival.”

Continental’s ContiTech Africa plant in Kariega cost NMB 125 jobs, and the Goodyear operation may add 900 to that number.

ContiTech is a conveyor belt manufacturer. The company develops, manufactures and markets products, systems and components made of rubber, plastic, metal and fabric.

Goodyear’s Kariega factory was opened in 1947. The company has been in South Africa since 1918.

Goodyear says in a statement that it is transforming its go-to-market strategy in the Europe, Middle East and Africa region to optimise its footprint and portfolio.

“As part of that transformation, Goodyear SA is launching a restructuring process in accordance with the provisions of the Labour Relations Act to address proposals regarding the closure of its manufacturing facility in South Africa and the realignment of certain sales, administration and general management functions. 

“Goodyear SA will continue to maintain a sales and distribution, and HiQ retail presence in South Africa.”

The restructuring process is being facilitated by the Commission for Conciliation, Mediation and Arbitration.

“As a company, we recognise our responsibilities towards our employees and their families and are firmly committed to acting fairly and providing them with appropriate support,” says a Goodyear SA spokesperson.