Goodyear plans to close production in Fürstenwalde
The tire manufacturer Goodyear plans to cease production at its plant in Fürstenwalde, East Brandenburg. The company in Hanau announced plans on Thursday to phase out tire production at the site by the end of 2027. According to a spokesperson, 750 jobs are expected to be cut. According to him, the plant in Fürstenwalde has around 930 employees. However, the so-called mixing plant in Fürstenwalde, where rubber compounds are produced, will be retained. The IG BCE trade union spoke of a major shock. Brandenburg's Economics Minister Jörg Steinbach (SPD) wants to intervene.
According to the company's plans, the plant in Fulda will also close. This is planned by the end of September 2025. A total of 1050 jobs are to be lost there. "This is a difficult but necessary decision in order to reduce overcapacity and bring our production structure in line with demand," the company announced on Thursday.
Minister for Economic Affairs Steinbach announced that he would contact the management as soon as possible to have the background to this decision explained to him and to sound out ways of preserving industrial jobs. Goodyear's decision was particularly shocking for the workforce. "Supporting the employees as best I can is a particular concern of mine."
The IG BCE trade union announced that it would not accept the decision to cease production in Fürstenwalde (Oder-Spree district) and would fight to preserve the plant. "The IG BCE will do everything to prevent this catastrophe," said Rolf Erler, District Manager Berlin-Mark Brandenburg. Tire production has been a tradition in the region for more than 80 years.
The market outlook in all areas of the tire industry has deteriorated "significantly and rapidly" in recent months, a company spokesman said on Thursday. "This situation has been further exacerbated by the increase in cheap imports from Asia, which represent a considerable burden for European manufacturers." In addition, the ongoing inflationary pressure has exacerbated the challenges to competitiveness. The decision to reduce overcapacity will enable Goodyear to improve its cost structure and secure its competitiveness and profitability in the long term.
The IG BCE accused Goodyear of pursuing "profit maximization" and doing too little to secure prospects in the tire industry. "It is completely incomprehensible, for example, that no strategic cooperation has been established with Tesla's Gigafactory in the immediate vicinity in Grünheide."
Goodyear claims to be one of the largest tire companies in the world. The company employs around 74,000 people worldwide and manufactures its products in 57 plants in 23 countries around the world. In Germany, Goodyear has around 5000 employees.
Goodyear's suppliers in Germany may face disruptions due to the proposed closure. The tire manufacturer is currently exploring alternative sources for rubber compounds, as the mixing plant in Fürstenwalde will remain operational.
To mitigate the impact on the local economy, Minister Steinbach plans to discuss potential solutions with Goodyear's management to preserve industrial jobs.
Source: www.dpa.com
