ANOTHER ONE BITES THE DUST RIGHT UNDER ANWAR'S NOSE - GOODYEAR TO SHUT DOWN OPS AFTER 52 YEARS, CITING RISING COSTS & 'LONG TERM INTERESTS OF ITS BUSINESS' - EVEN AS RAFIDAH TELLS ANWAR REGIME NOT TO DEPEND ON SIGNING FLASHY MOUs THAT MAY NOT BE SERIOUS - BUT ONLY JUST FOR 'SHOW'
PETALING JAYA: Leading tyre manufacturer Goodyear will shut down its factory in Shah Alam from June 30, impacting 550 of its employees.
Goodyear Asia Pacific president Nathaniel Madarang said the move is part of the “Goodyear Forward” transformation initiative aimed at streamlining the company’s operations.
“This decision was not made lightly. We need to advance the long-term interests of our business and customers,” he said, according to Utusan Malaysia.
He said through this initiative, Goodyear hopes to reduce annual costs by US$1 billion (RM4.73 billion) by 2025 to stay competitive and strengthen its position as an industry leader.
Madarang said the manufacturing plant in Shah Alam will close from June 30. The closure is expected to be completed by the end of the year.
Madarang said the company would prioritise employees’ welfare.
Goodyear Malaysia will remain in the local market by importing tyres from its factories in Thailand, Indonesia, China and Taiwan.
The Goodyear factory in Shah Alam started operating in 1972.
Goodyear had been present in Malaya since 1929 and became a tyre supplier for the country’s first car, the Proton Saga, in 1985. - FMT
'Unexpected shock': Rafidah on 'leaked memo' of Goodyear plant closure
Ex-minister Rafidah Aziz has reacted to a viral post on social media indicating that Goodyear Malaysia will be closing its 52-year-old manufacturing plant in Shah Alam, Selangor, effective June 30.
“It was an unexpected shock to read in the media, about a long-time entity in the industrial sector, Goodyear having decided to close its operations in Malaysia. It must give us pause to understand why.
“The government must quickly respond to such developments. While touting billions of possible investments, expectations being mooted and discussed, it is so important that industrial and business entities which are already here do not close shop and leave for other countries,” Rafidah told Malaysiakini, referencing the adage that a bird in hand was worth two in the bush.
Malaysiakini is contacting Goodyear for verification.
She said Malaysia must never rely on the signing of memorandums of understanding but should ensure there are serious memorandums of undertaking that include details and commitments to the site location and workforce.
“The location of the site, the structure of the workforce, such as managerial and executive, skilled workers and unskilled workers, whether the product is export-oriented and/or for domestic market.
“The volume and value of annual expected sales, any joint ventures, and other relevant information should be included in any memorandum of undertaking, particularly if the prime minister or a minister is a witness,” added Rafidah, who served as international trade and industry minister from 1987 to 2008.
In the internal memo which was purportedly leaked, Goodyear Tire & Rubber Company’s Asia Pacific president Nathaniel Madarang said the closure was part of the company’s “transformation programme”.
He indicated approximately 550 positions in its Malaysian operations will be affected.
The plant in Shah Alam was opened 52 years ago in 1972.
Rafidah called on the government to disclose how many companies have shut down operations in Malaysia.
“Where have they moved to? Why have they stopped operations in Malaysia?
“Analyse what was the push factor which drove them to shut down, and to add insult to injury, relocate elsewhere,” she said. - MKINI
Written by FMT, Mkini
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