Goodyear, the global tyre manufacturer, recently announced plans to close its South African manufacturing facility in Kariega after almost 80 years operating in the region as part of a broader transformation of its go-to-market strategy across the Europe, Middle East and Africa (EMEA) region.
In a statement, the company confirmed that it had launched a restructuring process in accordance with the Labour Relations Act. The proposals included shutting down its manufacturing operations in South Africa and realigning certain sales, administration and general management functions.
Despite the planned closure of the manufacturing plant, a Goodyear South Africa spokesperson emphasised that the company would continue to maintain its sales and distribution network in the country, along with its HiQ retail presence.
“This proposal is in no way a reflection of the commendable efforts or the years of dedication of our South Africa team, for which we are grateful,” the spokesperson said.
The spokesperson further explained that the restructuring process would be facilitated by the Commission for Conciliation, Mediation and Arbitration (CCMA), with Goodyear pledging to engage with “transparency and fairness” throughout the proceedings.
“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,” they added.
The announcement came as a shock to many employees at the Kariega facility. One worker, who requested anonymity, told the UD Express that staff were instructed the previous evening to report to the Despatch sports fields the following morning, where they were required to clock in using their employee cards.
“We were informed there are only two months of business left before the facility closes completely,” the employee revealed.
The news prompted a response from Denise van Huyssteen, Chamber CEO, who expressed deep concern about the development. “We are very saddened that a section189A process has been initiated relating to a proposal for Goodyear to restructure its manufacturing operations in Kariega,” van Huyssteen stated.
She noted that this closure followed similar recent developments in the tyre manufacturing sector. “This comes just months after Conti-tech announced that it is closing its plant, and the Bridgestone plant closure of over four years ago.”
Van Huyssteen highlighted the significant challenges facing tyre manufacturers in the region, pointing to several critical factors: “This highlights the massive pressure which tyre manufacturers are under due to enabling environment issues such as the logistics challenges; 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.”
The Chamber CEO expressed ongoing concerns about the viability of the manufacturing sector in the region, citing the absence of basic enabling conditions and the impact of US tariff policies on global manufacturing operations.
