Major multinational company closes factory in South Africa

The 78-year-old Goodyear factory in South Africa faces a sad ending, as the multinational company announced last week that it will close its Kariega plant in Nelson Mandela Bay. Once Goodyear exits, only three international tyre manufacturers will still operate factories in South Africa: Continental, Sumitomo (Dunlop), and Bridgestone.

International tyre companies with local manufacturing are finding it increasingly hard to operate in South Africa, mainly due to soaring energy costs and a flood of cheap, low-quality Chinese imports. In 2020, Bridgestone nearly shut down its factory in Brits, and in February this year, Sumitomo had to restructure operations at its Ladysmith plant in KwaZulu-Natal.

GOODYEAR FACTORY IN SOUTH AFRICA

Nevertheless, the remaining local tire manufacturers are all part of larger global organisations that feed the rest of Africa. As such, they employ around 5 000 workers collectively, and are responsible for more than 7-million tyres annually, says the South African Tyre Manufacturing Conference (SATMCC).

Sadly, the Goodyear factory in South Africa has been in operation since 1947. It employs in the region of 900 workers. The firm announced the closure in a general statement last week, on Thursday 5 June 2025. It said Goodyear South Africa will transform to a ‘go-to-market’ to optimise its footprint and portfolio, reports TopAuto.

RESTRUCTURING PROCESS

“As part of that transformation, Goodyear South Africa is launching a restructuring process under the provisions of the Labour Relations Act. To address the closure of the factory in South Africa, it will realign sales, administration and general management functions. As such, Goodyear South Africa will continue to maintain sales, distribution and retail presence in South Africa through Hi-Q,” confirms the statement.

Goodyear has clarified that shutting down its South African factory does not reflect the efforts or dedication of its employees. The company has pledged to act fairly and offer appropriate support to all affected workers. As such, the reorganisation process will be overseen by the Commission for Conciliation, Mediation, and Arbitration (CCMA). There are also job loss mitigation initiatives in place with the Nelson Mandela Bay Business Chamber to assist those who have been made redundant.

Experts says unreliable electricity supply, above-inflation cost increases and cheap Chinese imports have all contributed to tough trading conditions for local tyre manufacturers over the last five years. It’s a shame to see hard-working South Africans losing jobs …