Goodyear's plant closure and job losses raise concerns over SA's macroeconomic policy

Impending closure of Kariega tyre manufacturing plant stirs myriad of concerns regarding SA’s macroeconomic policy

- YOGASHEN PILLAY

THE announcement of Goodyear South Africa's impending closure of its tyre manufacturing plant in Kariega after 78 years of operation has stirred a myriad of concerns regarding the nation's macroeconomic policy and its capacity to lure and sustain investments.

Goodyear South Africa on Monday confirmed that they would be undergoing a restructuring at their plant and that this would affect more than 900 jobs, coming as the manufacturing sector's output in the country has been dwindling. The National Union of Metalworkers of South Africa (Numsa) also confirmed on Friday that it had received a section 189 notice from Goodyear.

The tyre manufacturing giant said it was transforming its go-to-market strategy in the Europe, Middle East & Africa region to optimise its footprint and portfolio.

“As part of that transformation, Goodyear South Africa is launching a restructuring process in accordance with the provisions of the Labour Relations Act to address proposals regarding the closure of its manufacturing facility in South Africa and the realignment of certain sales, administration and general management (SAG) functions. Goodyear South Africa will continue to maintain a sales and distribution, and HiQ retail presence in South Africa,” it said.