Goodyear South Africa announced that it will invest USD670 million to increase high-value-added consumer tyre production at their manufacturing plant in Uitenhage, Eastern Cape. All production of medium radial truck tyres will be relocated to other Goodyear plants in other countries.
The investment “will enable Goodyear to meet the strong and growing market demand for (high-value-added) consumer tires in South Africa and sub-Sahara Africa,” the company said in a news release. It expects to complete the investment by the end of 2016 or in early 2017.
Goodyear said the tire market in South Africa and sub-Sahara Africa “is expected to experience double-digit growth through 2020 led by the consumer segment.”
Jean-Jacques Wiroth, managing director of Goodyear South Africa, said in the release that the investment “is consistent with our strategy to serve the needs of our customers and the company’s focus to invest in high return projects that drive profitable growth.”
As part of the expansion, Goodyear South Africa plans to move the Uitenhage plant’s production of medium radial truck (MRT) tires to other plants across the company’s Europe, Middle East and Africa region.
The company said in the release that it has “affirmed its intention to consult with the union representatives and employees who are currently working in the MRT area to minimize the impact through offering a variety of alternatives.”
Goodyear South Africa said it will “continue to communicate with union representatives, employees, customers, business partners and local authorities in an on-going dialogue together throughout the consultation process.”