Goodyear to bounce manufacturing plants

Manufacturing News, Source : TheManufacturer.com
Published : 23 Sep 2005 17:01

Goodyear Tire & Rubber announced that it plans to close some of its plants, as part of a restructuring plan aimed at saving up to $1 billion by 2008.

The company will not identify how many plants it will close, or the plants' locations, as it continues its evaluation, but indicated that reducing high-cost capacity will be a key component of the continued turnaround.

Other cost reduction actions anticipated include increased Asian sourcing and ongoing productivity improvements. Goodyear said it is targeting cost reductions totaling between $750 million and $1 billion by 2008, through restructuring and other cost savings initiatives.

"We successfully achieved many of the goals we set three years ago and look to further improve our performance as we move to the next stage of our turnaround," said Robert J. Keegan, chairman and CEO of Goodyear.

Goodyear is the world’s largest tire company, and also manufactures engineered rubber products and chemicals in more than 90 facilities in 28 countries worldwide. The company employs a total of more than 75,000 people.

Comments on this story

click here to add a comment