Goodyear to Close Plant, 550 Workers to Be Laid Off

Jakarta, March 7, 2024 — U.S.-based tire manufacturer Goodyear has announced that it will close its manufacturing plant in Shah Alam, Malaysia, later this year as part of a global restructuring program aimed at streamlining operations and reducing costs.

The announcement was made by Nathaniel Madaranang, President of Goodyear Asia Pacific, on Thursday. He said the closure forms part of the company's broader transformation strategy, which targets US$1 billion in cost savings by 2025.

The Shah Alam plant has been in operation since 1972, while Goodyear has maintained a presence in Malaysia since 1929. The company also supplied tires for Malaysia's first national car, the Proton Saga, when it was launched in 1985.

“As part of this program, Goodyear has made the difficult but necessary decision to close its manufacturing facility in Shah Alam, Malaysia, effective June 30, 2024. The closure process is expected to be completed by the end of 2024,” Madaranang said in a statement.

The plant closure will result in the elimination of approximately 550 positions.

Goodyear stated that it remains committed to supporting affected employees throughout the transition and emphasized that the decision was made only after careful consideration.

“This decision was not made lightly, but it is necessary to support the long-term interests of both our customers and the company,” Madaranang added.

Despite the closure of its Malaysian manufacturing operations, Goodyear Malaysia will continue serving the local market by importing tires from the company's production facilities in Thailand, Indonesia, China, and Taiwan, according to local media reports.

The move reflects a broader trend within the global tire industry, where manufacturers are optimizing production networks, improving operational efficiency, and shifting manufacturing capacity to more competitive locations while adapting to changing market conditions.