26 May 2009 15:35 [Source: ICIS news]
LONDON (ICIS news)--Goodyear plans to close down its consumer tyre production at a plant in Amiens, France, due to high costs and weak industry demand, the US-based tyre company said on Tuesday.
The closure was expected to be completed in the third quarter of 2010, resulting in the loss of 820 jobs out of the total 1,200 positions at the plant, which also makes farm tyres.
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The closure would result in the reduction of 6m units of production capacity, which is part of the company’s plan to remove 15m to 25m over the next two years.
Goodyear would receive charges of $55m (€39m) for the plan, primarily related to severance payments.
Goodyear said it was also considering divesting its farm tyre businesses in Europe, the Middle East and Africa (EMEA) and
The company produces styrene butadiene rubber (SBR), which is used in the manufacture of tyres, and is a large buyer of butadiene (BD).
($1 = €0.71)
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