Metalworkers’ union Numsa and the department of trade, industry & competition (dtic) are racing against time to find strategic partners to take over the Goodyear SA plant in the Eastern Cape and safeguard more than 900 jobs before a two-month deadline expires.
The tyre manufacturing plant in Kariega shut its doors on Friday after unions secured an improved severance deal, which will see each retrenched employee receive a lump sum, plus four weeks’ pay for every year worked. The workers will also get their August salary and a 2025 bonus entitlement accrual.
More than 900 people were employed at the plant, whose closure is a significant blow to the car manufacturing-heavy Nelson Mandela Bay economy.
The company announced in June it would shut down its manufacturing operations in SA, retaining only its sales, distribution and Hi-Q retail presence in the country.
The first tyre rolled off the production line at the plant in 1947.
SA is the largest tyre market in Africa when it comes to production and consumption. The sector, which is facing significant competition from cheaper imported tyres, is valued at R25bn annually and dominated by Bridgestone, Continental, Goodyear and Sumitomo (Dunlop).
Market research portal Research and Markets reports about 8.1-million new tyres were produced locally in 2024 and 8-million tyres were imported.
Goodyear was also reportedly closing factories in Germany, affecting about 1,750 jobs. In the US, Goodyear was cutting about 850 jobs in Virginia. The plant closures were aimed at lowering operational costs and increasing efficiency, among other things.
In a media briefing in Joburg on Monday, Numsa general secretary Irvin Jim said Goodyear SA agreed not to dispose of its property for a period of two months, “to enable Numsa to further pursue discussions with government and third parties in an attempt to save the manufacturing plant”.
“To this effect, with the support of national government (the dtic in particular), IDC [Industrial Development Corporation] has made an expression of interest to Goodyear to take over the plant infrastructure.”
Jim said the union and the government are “busy looking for strategic partners that can invest and take over the plant with the intention of saving the jobs that have been lost as a result of Goodyear’s decision to close the plant”.
“There is one strategic partner that we are talking to,” Jim said, stressing he was not at liberty to divulge who the strategic partner is at the moment.
“Together with the IDC and government we will be visiting and engaging that strategic partner,” the Numsa general secretary said, adding the union would do everything in its power to ensure the Goodyear plant was reopened and affected jobs saved.
Dtic spokesperson Kaamil Alli told Business Day: “The department is currently engaged with the firm in respect of the announced closure. We are considering the options available to us and will communicate once a firm decision has been taken.”
Jim bemoaned the “dumping of tyres” into the local market by companies from China, Vietnam and Cambodia and called on government to implement a complete ban on their importation to save the local tyre industry.
Numsa Eastern Cape regional secretary Mziyanda Twani said workers who lost their jobs had been “mentally affected” by the Goodyear decision. “The entire community of Gqeberha is unhappy about this decision and want the government to reopen the plant,” he said.
Eastern Cape economic development MEC Nonkqubela Pieters did not immediately respond to a request for comment.
Jim said Numsa appreciated the positive response from government in agreeing to present a united front with the union in exploring ways to save the plant.
“However, we must emphasise that the closure of Goodyear sets a dangerous precedent in our country’s history.
“As such, we not only condemn this decision by Goodyear, but we also strongly urge government to take decisive measures to protect SA’s existing manufacturing capacity as the possibility exists that other companies can do the same, where they close their manufacturing and only maintain their distribution network as a mechanism to dump tyres in SA,” he said.
The decision to close the Kariega plant “is a direct blow to workers, their families and the local community, but it also threatens the future of manufacturing in our country”.
“Numsa wants to make it clear that we will continue to do everything within our power, in partnership with government and strategic stakeholders, to secure sustainable solutions that protect jobs and safeguard the future of this plant,” said Jim.
With Ntsikelelo Qoyo (The Herald)
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.