US manufacturing company exits South Africa

Goodyear, an American multinational tire manufacturer, has announced plans to close its manufacturing operations in Nelson Mandela Bay, South Africa.

According to a report by South Africa’s BusinessTech on Tuesday, while the company will continue its sales and distribution presence in the country, including its Hi-Q Retail network, its manufacturing facilities in the country will cease operations.

“The plant, which has been operational since 1947, currently employs around 900 people directly and supports more jobs through its broader value chain, including catering, security, logistics, and maintenance services,” the report reads.

The move, the publication said, is part of a broader restructuring of Goodyear’s operations in Europe, the Middle East, and Africa (EMEA) as the global tyre manufacturer adjusts its footprint and product portfolio to meet evolving market conditions.

“The company’s announcement was accompanied by a formal restructuring process in line with South Africa’s Labour Relations Act,” the report reads.

“The Commission for Conciliation, Mediation, and Arbitration (CCMA) will oversee the proceedings.”

Speaking on the development, Goodyear said it remains committed to supporting employees affected by the closure fairly and responsibly.

“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 company said.

“We recognise our responsibilities towards our employees and their families and are firmly committed to acting fairly and providing them with appropriate support.”

The company’s exit comes amid political tension between the US and South Africa over the controversial Expropriation Act, which allows the South African government to seize land without compensation under certain circumstances — in a bid to address “decade-long inequality” brewed by the apartheid era.

Goodyear South Africa is part of Goodyear Tyre & Rubber Holdings and operates within the company’s emerging markets cluster.