Large multinational company shuts factory in South Africa

14 Views

It’s sad news for the 78-year old Goodyear factory in South Africa. Last week it was announced that the large multinational will be close its Kariega plant in Nelson Mandela Bay. Without Goodyear, there will only be three international companies with a factory in South Africa: Continental, Sumitomo (Dunlop) and Bridgestone.

The trading environment is becoming increasingly difficult for international tyre companies with manufacturing in South Africa. This is primarily due to high energy costs and cheap, sub-par Chinese imports being dumped in the country. Back in 2020, Bridgestone came close to shutting its Brits factory in South Africa. Likewise, Sumitomo was forced into restructuring at its Ladysmith plant in KwaZulu-Natal earlier this year, in February.

GOODYEAR FACTORY IN SOUTH AFRICA

Nevertheless, the local tyre manufacturers that remain are all part of larger global organisations that feed the rest of Africa. As such, they employ around 5 000 workers collectively, and are responsible for more than 7-million tyres annually, says the South African Tyre Manufacturing Conference (SATMCC).

Sadly, the Goodyear factory in South Africa has been in operation since 1947. It employs in the region of 900 workers. The firm announced the closure in a general statement last week, on Thursday 5 June 2025. It said Goodyear South Africa will transform to a ‘go-to-market’ to optimise its footprint and portfolio, reports TopAuto.

RESTRUCTURING PROCESS

Cheap Chinese imports are being challenged by the competition commission. Image: File

“As part of that transformation, Goodyear South Africa is launching a restructuring process in accordance with the provisions of the Labour Relations Act. To address the closure of the factory in South Africa, it will realign sales, administration and general management functions. As such, Goodyear South Africa will continue to maintain sales, distribution and retail presence in South Africa through Hi-Q,” confirms the statement.

Goodyear says closing the factory in South Africa is in no way a reflection of the efforts and years of dedication. Therefore, it says it is committed to acting fairly and providing affected employees with appropriate support. As such, the reorganisation process will be overseen by the Commission for Conciliation, Mediation, and Arbitration (CCMA). There are also job loss mitigation initiatives in place with the Nelson Mandela Bay Business Chamber to assist those who have been made redundant.

Experts says unreliable electricity supply, above-inflation cost increases and cheap Chinese imports have all contributed to tough trading conditions for local tyre manufacturers over the last five years. It’s a shame to see hard-working South Africans losing jobs …