READ: Goodyear to Close Kariega Plant After 78 Years, 900 Jobs at Risk

Goodyear South Africa has announced the closure of its manufacturing facility in Kariega, Nelson Mandela Bay, Eastern Cape, after nearly eight decades of operation. The plant, established in 1947, will shut down by late 2025, affecting approximately 900 employees and threatening thousands of jobs in related industries. The company has initiated a Section 189A retrenchment process under South Africa’s Labour Relations Act to facilitate the restructuring.

The decision reflects Goodyear’s strategic shift to optimize operations amid challenges in the global tire manufacturing landscape. The Nelson Mandela Bay Business Chamber highlighted external pressures, including the lack of basic enablers and potential United States tariff policies, as significant threats to South Africa’s manufacturing sector.

The closure follows a trend in the region, with the chamber previously assisting employees affected by the shutdown of Continental Conti-tech’s plant in Nelson Mandela Bay.

Goodyear Tire & Rubber Company, in a regulatory filing on June 2, 2025, disclosed that the closure will incur costs of $100-$110 million, with $40 million in charges expected in the second quarter. The move is anticipated to enhance operational efficiency in the Europe, Middle East, and Africa region.

The closure is a significant blow to the Eastern Cape economy, where the plant has been a longstanding employer. The Nelson Mandela Bay Business Chamber expressed sadness over the retrenchments, emphasizing the broader impact on secondary industries. No official statements from Goodyear South Africa have detailed plans for employee support or potential relocation assistance as of June 6, 2025.