Official Goodyear statement:
Goodyear today announced plans to close its Union City, Tenn., tire manufacturing facility by the end of 2011 as part of its strategy to reduce high-cost manufacturing capacity globally and provide cost effective high-value-added products that the market is demanding while continuing to make high quality products for its customers.
"While we are committed to manufacturing in North America, all of our plants must be cost competitive and be able to demonstrate sustainable world-class productivity. That is not the case with this plant, and as a result, the market has moved beyond what the factory is able to build," said [Richard J. Kramer, chairman and chief executive officer].
This closure, when complete, will eliminate approximately 12 million units of available capacity and is the final action in plans announced in 2009 to eliminate 15 million to 25 million units of high-cost capacity globally. This action is expected to provide annual cost savings of approximately $80 million. The Union City plant currently employs approximately 1,900 associates.
The announcement came in Goodyear's 4th quarter 2010 earnings report, which stated a net loss of $177 million on revenues of $5.1 billion. The company reported a net loss of $216 million on sales of $18.8 billion for the year. According to the report, the total after-tax restructuring, accelerated depreciation and asset write-off charges for closure will be approx. $270 million, which includes approx. $140 million in cash charges.
Goodyear's other U.S. manufacturing facilities are located at Akron OH, Gadsden AL, Buffalo NY, Topeka KS, Danville VA and Fayetteville NC.
Union City is a small town in Northwest Tennessee with a population of about 11,000. The largest employer is Goodyear, which opened there in 1969.
- Haslam signs bill allowing religious discrimination (18 replies)
- Latest chapter of the Pilot saga (6 replies)
- Mayor Rogero announces $302.68 million budget, no tax increases (6 replies)
- Chobani CEO Giving Employees an Ownership Stake in Yogurt Empire (1 reply)
- KCS cancels all TCAP/TN Ready tests not already underway (4 replies)
- Clinton, Trump rack up big wins in New England states (9 replies)
- McIntyre to helm UT education leadership center (8 replies)
- What's up at South-Doyle High School? (11 replies)
- Judge Orders Recount on Amendment 1 Vote (5 replies)
- TDOT shares plan for widening Chapman (12 replies)
- RIP Prince (9 replies)
- What are best places to get soup in Knoxville? (22 replies)