Goodyear closing down tire plant in the Philippines
It looks like the global economic recession is still far from over, and some companies are taking up measures to save on costs. Goodyear Tire & Rubber Co. announced that it will close its tire plant in the Philippines.
Said closure will displace approximately 500 employees or about 83% of its staff in the country. It’s just one of the measure being taken by the company as it find more ways to cut costs amidst weak demand and high cost at the facility.
The tire plant in Las Piñas which has been in existence in Philippine for more than 50 years will be shut down effective September 30 of this year.
Goodyear Philippines Inc. managing director Dave Morin said the local manufacturing facility was no longer operating competitively in terms of costs due to the erosion of its export business.
Piere Cohade, president of the company’s Asia-Pacific region said of the Philippine facility which opened in 1956, “Due to high costs compared to other plants in the region, tires produced in the Las Piñas plant are not competitive in the marketplace.”
The company’s production would be moved to lower-cost plants in the Asia-Pacific region, while sales and marketing operations in the country won’t be affected.
Morin said that the company would be providing employees that would be displaced a retrenchment package that “far exceed what’s legally required.”
He refused to elaborate though.
July 18, 2009
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Tags: closing down, displaced employees, Effects of recession, employment problem, Goodyear Tire, Philippines · Posted in: Labor, Philippine business news, Philippines
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