The closure of the Goodyear tyre manufacturing plant in Kariega is most likely related to the dumping of illegal tyres in South Africa.
While Goodyear declined to comment on the issue, several industry commentators feel that the dumping of cheap tyres in South Africa by at least 4 countries from the Far East has contributed to the factory’s decline and imminent closure.
Even with dumping duties put in place during 2024, loopholes still exist that lead to cheaper tyres that do not necessarily comply with the required standards, ending up on vehicles. This is the view of Nduduzo Chala, the Managing Executive of the South African Tyres Manufacturers Conference (SATMC).
The SATMC represents the four local tyre manufacturers: Bridgestone, Continental, Goodyear and Sumitomo Rubber.
“It is a sad reality to happen, but we have to allow Goodyear to go through its processes as a company. Hard work goes into the closure of loopholes for the dumping of tyres between the SATMC and the relevant government institutions,” says Nduduzo.
He says that local tyre manufacturers are experiencing a decline in the demand for their tyres as cheaper tyres from the East become more popular. “We trust legislation will assist in stopping this problem to protect jobs in the local tyre manufacturing industry,” Nduduzo says.
Goodyear has not elaborated on its original statement, saying that although it is only the manufacturing that will be halted, the sale and distribution of tyres from the brand will continue through its Hi-Q and other tyre outlets.
In an official statement, it says it’s transforming its go-to-market strategy in the Europe, Middle East and Africa region to optimise its footprint and portfolio.
“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 proposals regarding the closure of its manufacturing facility in South Africa and the realignment of certain sales, administration and general management functions.
Goodyear has been in South Africa since 1918, and it began local manufacturing in 1947. It manufactured a wide range of tyres locally, including a unique Off-The-Road (OTR) bias tyre, used in heavy-duty applications like mining and construction vehicles. Its Kariega plant was the sole producer of this tyre.
