Why American Multinational that Employs 900 People is Exiting South Africa
Goodyear, the American multinational tyre manufacturer, is closing its manufacturing operations in Nelson Mandela Bay, South Africa. This move will directly impact around 900 employees and disrupt a broader value chain that has supported the facility since 1947....READ ORIGINAL & FULL CONTENT FROM SOURCE |
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The company says the decision is part of a broader restructuring across its Europe, Middle East and Africa (EMEA) operations.
End of the Road for a 77-Year-Old Plant
The company announced on Tuesday that while Goodyear will maintain its sales and distribution footprint in South Africa, including its Hi-Q Retail network, the local manufacturing plant will cease operations.
The Nelson Mandela Bay plant, which has operated uninterrupted for over seven decades, has been a major employer in the Eastern Cape.
In addition to its direct workforce, the closure will impact auxiliary services, including catering, security, logistics, and maintenance.
Formal Wind Down Underway
The company is already undergoing the due legal process required of a corporate entity withdrawing from the South African market.
In line with the Labour Relations Act, a formal restructuring process has been initiated, with the Commission for Conciliation, Mediation, and Arbitration (CCMA) set to oversee consultations between Goodyear and labour representatives.
“This proposal is in no way a reflection of the commendable efforts or the years of dedication of our South Africa team,” the company said in a statement.
“We recognise our responsibilities towards our employees and their families and are firmly committed to acting fairly and providing them with appropriate support.”
Political Climate Adds Pressure
The decision comes amid rising political tension between the United States and South Africa, most notably around the country’s controversial Expropriation Bill, which allows the government to seize land without compensation.
The legislation, aimed at correcting historic imbalances rooted in apartheid-era policies, has unsettled some foreign investors.
While Goodyear did not directly cite the bill as a factor in its decision, its exit underscores mounting investor anxiety in an environment of economic stagnation, energy instability, and uncertain policy signals.
A Blow to Local Manufacturing
Goodyear South Africa operates under Goodyear Tyre & Rubber Holdings and falls within the company’s emerging markets cluster.
The plant closure deals yet another blow to South Africa’s struggling manufacturing base and raises new concerns about job security in a region already grappling with high unemployment.
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